Because the caller actually knew how much she owed when she called. Dave doesn't want to waste his time on people who don't care enough to add up their own debt.
Wow, awesome I’m 30 with my wife who is 23 and our 3 daughters 1,2,and 4 with student loans and fixed SSI income and I’m looking into bankruptcy, I too have a car note for a Ford Fusion Hybrid 2018 with only 1.9 % financing but our debt has to get under control I’m unemployed
Bankruptcy is nothing to be ashamed of unless you plotted and schemed to exploit it. Bankruptcy is a right enshrined in law. Using it is undesirable in a perfect world, but when you are in over your head, it is a perfectly viable option. Most all creditors have no issue exploiting the law to their benefit...including encouraging reckless borrowing practices that will lead a person to bankruptcy. Creditors are rarely as pure as the driven snow. People need to look at their life like a business’ balance sheet. A business will handle finances based on what is in the business’ best financial interest. There is no reason why ordinary people shouldn’t think likewise when they find themselves financially underwater. Now, if you find yourself in this kind of mess after having used bankruptcy before, then you bear more of the fault.
Whenever I see people with these beautiful vehicles, I always think “wonder how much debt that put them in?” as I drive off in my paid off old Honda lol
2004 Toyota Tacoma here I’m 28 it’s the only vehicle I’ve ever had. So I feel you on that people always ask me how long you gonna drive that piece lol I say till it won’t start.
I see those big diesel pickups with 5th wheels and motorcycles and ATVs behind them all the time. All I can see is the $100K+ debt riding on the driver's shoulders. Thinking about it makes me love my paid-for Subaru even more!
James P it's kinda crazy how good Diesel hold their value in Texas at least. I have a 2016 Ford F-250 lariat. Got it for $49,000 which is a steal and I put 84,000 miles in a year in a half. It's still worth at least $43,000 trade in.
Interesting - I guess Diesels are a different market. I'm not a pickup truck kinda guy, but I wish Subaru would sell their Diesel stickshift models here in the US like they do in Europe! Torque for days!
Mr. Ramsey, THIS IS my all-time favorite call and advice I’ve seen and heard from your show!! You were direct, realistic, and set a plan that gave this caller HOPE! 🙌🙏👍 So encouraging for me to witness. THANK YOU!
Am I the only person who watches Dave Ramsey videos not for financial advice, but to feel better themselves. Seriously. Listening to the people who call in make me feel better about myself.
She does chapter 7 bankruptcy she can relieve herself from all this debt ..not have to worry about the hassle of getting other loans and negotiating Even a chapter 13 she can negotiate not worry about them trying to collect on her
come on Dave, she could file for bankruptcy if a chapter 7 she can liquidate her assets and get rid of that debt and learn from her mistakes,If she can't do chapter 7 then chapter 13 is a payment plan she's still going to work a lot of things out and negotiate the loans all that stuff. This is more of a hassle What you're getting at is it's still going to put her in debt
Similar sitiation...I'm currently in debt for 50k on a truck and camp trailer...pooping my pants realizing I'm married to these two contracts for over 5 more years....stupid tax in full effect here everybody....I'll never finance anything again after I get myself outta this mess...
Chapter 7 bankruptcy is an important option for low-income Americans to have access to a fresh start. At our website, we screen to see if people qualify and should file for bankruptcy. It's a great chance to get a clean slate and people shouldn't feel stigmatized because of it.
Bankruptcy is only okay when your income is far below what you owe to your creditors. during bankrutpcy you have to go through what's called a "means test", if you pass meaning you make below the average salary for a single person then you can file bankruptcy, if you make more than that then you aren't allowed to file chapter 7 and have to file chapter 13 bankruptcy which is a repayment plan for i believe 5 years.
That's true. I work for a credit union and we wouldn't do that much unsecured even if you have great credit. Most likely, she'll have to let them repo everything and make payment arrangements. They're basically stuck with most everything.
I wouldn’t let the bank repo the car just cause they come get it doesn’t erase the debt they will sue you for the balance after auction causing a public report dats 25% of your net income each pay. Repos look bad on report even Dave Ramsey filed bankrupcy smh
Made me realize I'm doing okay on debt. In a pickle now, but once I'm not adding extra debt, and once I have my nursing degree I'm gonna work my add off to get that stuff paid off!
Getting multiple vehicles repo'd is NOT better than filing bankruptcy and selling vehicles they're upside down on is not going to help their medical debt situation. It essentially means they keep the debt from the vehicle, but none of the utility of paying for a vehicle. Dave is right about a lot of things, but these people already pay for a home; a secured asset. They can absolutely keep that home through a bankruptcy. They make a very comfortable income. If they file, and they retain just the home and the leased vehicle, they can buy another cheap vehicle cash within a month or two and recover from the bankruptcy very quickly. Dave has tied bankruptcy to an emotional endeavor like divorce and it causes him to lose sight of his financial genius sometimes. This is one such circumstance.
Note to everybody Dave Ramsey as of now is worth $55 million it's easy for him to sit there and try to get people to avoid bankruptcy however he filed for bankruptcy back in the day and alleviated all that debt I think that's the best option for this person is bankruptcy
While I do agree he's being a bit hypocritical on his stance on bankrutpcy, he did however pay back his creditors even though he didn't have to post discharge.
I am just celebrating 20 years as a 911 dispatcher having been able to save lives by grace of God, and perhaps just good luck. But financially I am devistated. To a tune of 50K, credit cards and I assure you a tough NY living here on a civil servant life. I never thought of taking my own life until this, it seems no matter what good I have put out, I just won’t get that break. I don’t begrudge those with money, I thought I was smart all along. I was. I lived a good life, it just caught up in small ways. With so many people suffering from serious disease it makes me feel horrible even complaining. How I wish I could end this all, in a positive note. I will return to work, I will give my all to save life or at least be the last caring voice a person hears, but in my heart I’ll be the one in pain. All to the tune of the almighty dollar, and an angel I just don’t have on my side.
Kaidosbuddyagain Doberman oh my goodness... You don't realize how valuable you are... You are the angel on earth 🌎 seriously?! You don't need one you are one... 20 yrs being a listening ear for those people in distress?! Wow idk how anyone does it with such grace! You know what? 50k in debt that's a lot for some people or just a bit for others at the end of the day is just material things... Not worth it! Keep being fabulous an s plug yourself to a good church family 👪 take care ❤
karydiaz74 you are a very kind person. I thank you. I know as humans we don’t typically allow others to stand too proud, and certainly no hubris. I’ve made plenty of mistakes, certainly. I do hope that when I’ve given my best tho, that I’ve helped people on the worse day of their lives and I have. From the newborn to the ninety year old, I’ve truly given my best to them, often it was a rewarding experience, other times it was just sad. Like all people I can’t help but wonder how much better I could be if not for those burdens that keep me awake with worry, I can only imagine. Thanks again!!!
How do you get direct advice from Mr. Ramsey ? Is it only through calling during a live show ? My wife works, I'm a stay at home dad. We have one income and two of the kiddos are toddlers. Feeling hopeless 😩 but we are all healthy 🙏
5th wheels are very popular right now. there are a ton of people in Texas and florida that still need places to live. There are a ton of people that are full timing in rvs too. Find the right place and you could sell both
I can answer this b 4 I watch video based on title so since I declared bankrupt 2 years ago it was honestly the best move i did the positives out weighed the negatives u ask what r the negatives stays on credit for 10 years score goes down can't buy house for 4 years unless fha then 2years and that's about it honestly now positives u get to keep ur house if u want all ur unsecured debt gone not student loans u get to choose to keep ur car or not none of ur retirement gone it's comes down to this if you kno paying off ur debt will take longer than the time to save money to buy a house which is around 2 years do it I mean especially if u have a lot I had bout 80k that would've taken longer than 2 years than you have to add years ontop if u want to save for house that could take 4 to 5 years I rather file get it over with than take them 2 years and save for a house and build back my credit within 2 years my score is 695 exactly what I was b4 I filled 2 years ago
Byrant Taylor I’m glad I came across your post because I’m about $80k in debt. My dad said it was the best move he made 10 years ago. Like if the goal is to cash flow everything in the first place and not be concerned about credit why would a person choose to go through the emotional and financial hardship?? I agree with the statement “it’s like getting a divorce “ but more like you’ve been married to a toxic person brainwashed to think that’s what marriage is about until you stop being concerned with keeping face and discover that a divorce was the greatest thing for you.
In some situations you do what you have to do . If have to file bankruptcy so be it . It’s nothing to be ashamed of it gives you a fresh start ! Also stay away from in store credit cards they will trash your credit ive Clark Howard say it .
Seen it many times in many boom times. Things are going good (in the oil fields in this case) they buy lots, spend lots, and save nothing. The bust comes along and they are left with a reduced income (or no income) and lots of toys they cannot pay for. I've seen it happen with Forestry workers, oil field guys, home builders, and even farmers. The moral is save money when times are good and assume things will bust at some point!
Filing bankruptcy is so much easier than some people think. Dave is flat-out wrong. Don't look at BK as a moral issue. Look at it like the businesses do: as a strategic issue. Do the benefits of BK outweigh the negatives (and for most people in debt they do)? if the answer is yes, then file. Most people who file BK keep their houses and cars. There is so much negative and incorrect information about bankruptcy out there. Don't believe me? Ask someone who has filed a chapter 7 and see what they tell you. Bankruptcy is awesome.
Wow, I think people should lose everything if they declare bankruptcy. Keeps more people from pushing their responsibilities away. The way I see it... if you want a "fresh start".... Then you can lose it all... so you can start fresh....
My parents are in a deep hole. They don’t even know how deep it is but if I had to guess I’d say $300,000 easy. They raised 12 kids, my mom has some medical issues and doesn’t work, dad only makes about $50,000/year Do you think BK is the way to go for them? Even if they do lose everything they can rent and I think they’d be a lot happier.
Have them see a lawyer. You and them will sleep better.they can never pay that kind of debt. Bankruptcy will wipe it away. Give them a fresh start. Our esteemed president did it a bunch of times.
Question... Dave said to save $1000 and to stop investments. The only investment I have is my TIAA retirement which I have $100 a month put in. Should I close it out and take the money to help pay off my debt or should just let the money sit. My husband just went back to work after being unemployed for 8 months. He is making $600 less a month and we are now over $1000 a month in the hole. Every time I try to suggest something to try I feel like I’m hitting a brick wall with my husband.
This man is so full of shit. I filed chapter 7,and 2 months after it discharged,i bought a 3 year old Acura at 2%. The key to filing a BK is to do it while you are still current on your bills. Your credit report will show no late payments,all credit will go straight to the BK. My score was 640 after my BK.
This is the problem with Dave's advice, what if the credit union manager says "Sorry, we're not giving out huge unsecured loans". This whole premise is based on the credit manager bailing them out. If they got into this huge mess to begin with, what credit manager would give them even more loans, and unsecured ones at that? I wish people would call back and say how it ended up turning out.
"what credit manager would give them even more loans, and unsecured ones at that?"...Because the credit union already has large unsecured loans since the vehicles are upside-down. If they don't give the loan the couple will file bankruptcy and the credit union won't get anything. If they give the unsecured loan they at least have a chance of getting their money back. The credit union manager will probably recognize that he isn't in a good bargaining position.
Vehicle loans are not unsecured. The bank can repo the vehicles and still gain back the money from the sale of the vehicle at auction (maybe 75% of it's current value). If they give an unsecured loan to these people (who obviously aren't great with money), then it will end up being a total loss for the bank.
I'll try to make it simple. Let's say a creditor owes $50,000. on a vehicle. The bank repossesses the vehicle and sells it at auction and gets $40,000. They then have a $10,000. loss. In case of a bankruptcy they will be unable to pursue the creditor for that loss. So in effect $10,000. of the vehicle loan is already unsecured. If they instead give the creditor a personal loan for $10000. and prevent the bankruptcy they then have a chance of getting the $10,000. back. If the creditor doesn't pay back the $10,000. they then have a $10,000. loss. So in either case the bank is in the same position.
Creditors are surprisingly difficult to deal with sometimes when your payments are current. Guess they figure do not fix it if ain't broken. Much more amenable about 3-4 months behind, but need to be ready to act if they still refuse new loan (which they should, not that it will change the later bankruptcy much)
I got cancer when I was 28 and my insurance wouldn’t pay for it so I had to quit working to get on Medicaid to save my life. I haven’t been able to go back to work for 9 months and I have no more money or anyone to lend me. I don’t know what to do. I can’t go back to work for at least 3 more months...
I’m a bankruptcy paralegal, and this is absolutely HORRIBLE advise. He is NOT an licensed attorney and should NOT be giving you legal advise. Please talk to an attorney if you are considering bankruptcy.
meanwhile i'm driving around in a $2000 subaru with split-boot cv joint fixes i did on the weekend -- and i own a 1.5 million dollar real estate empire
Look, i love Dave Ramsey and understand and agree with 99.9 percent of everything. Bit, the problem i have is that some if the advices he gives is completely out of touch with reality. I mean go to credit union and tell them you have a 19k unsecured note, because car is worth 32k in kbb. NO credit union or bank will "ok your right sire no problem". None None at all.
I am not sure you are right on that. They have a large income, and repossession typically leads to a huge loss for the bank. If they qualify for the loan based on their ability to pay the 19,000 loan, and surrender the car for the bank to sell, the bank would end up ahead. I don't think this strategy would work for someone making half what they make, but I could see it working when you make over 100k a year. You could be right though. Banks don't always do what is in their best interest.
Yes a bank employee should logically go with Daves plan its the best outcome for the company. But.. Most employees are poorly paid and treated by their employeers. Frequently employee's have no power to approve anything today so the banks own rules create loss. 90% chance they employee doesnt care and if they do the bank wont let them take the proper course. Business in America now.
I agree with everything except the leased Lincoln. Dave wants you to borrow $8,000 and lose the leased car today. Meanwhile you can keep paying $450 monthly for the next 20 months which equals $9,000. Borrow $8,000k today and drive around in a $1,000 non reliable car or keep driving your new car for the next 20 months for $9,000($450 monthly) your choice
@@BillyBob-ir6lx what if you stupidly signed yourself to a bail bonds worth $20,000 for your sister, under the promised your sister and mother would pay it and then they refuse to? Btw the bailbonds got back their money, this is just the 10% fee for using the service
Rich dad poor dad is a pile of dung. The author lied about everything in that book and he was never brought up that way. On the substance of the book, it has next to no helpful information on budgeting and the sort. It’s documented that the author kept it vague as a means to advertise his own schemes. Sorry man I just hate that author.
I just posted three sources among many. The man admires Trump's business practice of screwing over other with bankruptcies to preserve his own personal wealth (please don't conflate Trump's politics with his business practices and rash of bankruptcies). I despise Kiyosaki and his predatory practices and his useless cash-grab books.
I haven't read all of the comments so it would be nice to see where you obtained your information from. I'd like to analyze it for myself and make my own opinion about it.
@@MusicalProf nothing wrong with kiyosaki. These people just blindly read propaganda on him an well you know, if it's on the internet it must be true....
Dave loves telling people bankruptcy is never an option yet when he hit dire financial straits he couldn’t file fast enough to give his creditors the middle finger. Like taking marriage advice from a counselor who filed for divorce twice LMAO
In my opinion, slackers who knew exactly what they were doing and planned this "escape route" of bankruptcy all along. Disappointed that Dave would help them work the system. Its the reason bankruptcy laws were tightened and now they even want to restrict it some more.
I have to disagree. Financial problems are almost never the fault of the debtor. The creditors are the one's who are to blame for people's problems with debt because since the creditor's are professionals they are supposed to be the adults in the room. They are the one's who are lending the money and it is their job to evaluate the creditor's ability and willingness to repay and make their decisions accordingly. If they fail at that they have made a bad business decision and the debtor's are not to blame for another's bad decision.
Gabriel Guzman Bankruptcy will trash your score for 2 years and after that, your score will recover over time. It will stay on your history for 7 years
When a large corporation or even small business hits hard times they file bankruptcy ASAP......when a poor individual hits hard times they should pay everything off including interest, fees, taxes and so on? A lot of these people crawl scratch and pay there way out only to discover they will probably never be able to retire and some even live in grinding poverty.
Sorry but that can’t be right. Take a $7k loan to get out of a car loan. Have you heard of carmax? I returned my 2021 pilot back to a different Honda dealership and it was still worth almost dollar for dollar what the buyout was at the other dealership barely came out of pocket to pay off different
We are thinking about bankruptcy, we have about 30,000 in debt all of it is in collections. We only make about 28,000 a year.. I just don't see any other way at this moment. All of the debt is medical btw.
Amanda Hurt, look up a video of Dave Ramsey showing how to negotiate collection debt. The step by step instructions should be something like: Stop paying on collections if you haven't already, increase income by working a 2nd job or overtime, save a few thousand (I don't remember how much percentage of original total to save), offer collector the amount you saved and explain they won't get anything if they won't accept your offer, GET THE SETTLEMENT IN WRITING AND NEVER GIVE ELECTRONIC ACCESS TO YOUR ACCOUNT. Good luck to you
Don't declare bankruptcy. Send them like $25/month and tell them that's all you have and if they don't like it you will keep that $25. If they threaten legal action (basically empty threat) tell them they can sue you all they wont but it wont change the amount of money you have right now. Always ask what company they represent and get a name before you speak to them. They are not allowed to threaten, badger, or harass you in any way. Please look up the Fair Debt Collection Practices Act. Report them if they are causing you problems... they will face a $1500.00 fine per instance. Or you can be like me and let them do for 2-3 weeks and then file 15 complaints against the same company/person. I cost them like $15k for bothering me. It was a nice feeling.
Amanda Hurt number one thing is what is your age? are you young enough to recover? do you wanna buy a house soon? if you're young enough and not looking to buy a house for the next 10 years, don't hesitate.
I bought a BMW 328i that's 2008 and it had 70,000 miles which is salvage. I paid $2,000 for it and $450 to fix it. I am so happy with me car. I owe $40000 in school loans and I am only worried for that. I don't go out and try my best to pay way more than what is requested. But I don't understand why I am always worried for my bills every month. Why 😥😥😥😥😥😥
Sorry for the grammar. My student loan WAS like yours, but I don't have to worry about it anymore; I got help with mine and it's possible if it's OLD enough.
I don’t get the car thing. I have a 14 year old car no payments for over 10 years. I don’t need to prove anything I see everyone driving new cars and think wow
Unlike a lot of callers, this woman seems very willing to do what it takes to get out of the mess she's in.
I have never seen Dave work so hard for a caller.
Because the caller actually knew how much she owed when she called. Dave doesn't want to waste his time on people who don't care enough to add up their own debt.
She also has a very willing attitude unlike a lot of callers who are in a mess.
Wow, awesome I’m 30 with my wife who is 23 and our 3 daughters 1,2,and 4 with student loans and fixed SSI income and I’m looking into bankruptcy, I too have a car note for a Ford Fusion Hybrid 2018 with only 1.9 % financing but our debt has to get under control I’m unemployed
Right! He was so kind and reassuring. This is probably the nicest I’ve ever seen him.
This is the old school Dave...ten and fifteen years ago he would spend three hours a day doing this for people.
I always wish there could be a follow up video a year or two later on where these people ended up.
He connected with this caller so much. I love that he gets so invested in his callers.
Bankruptcy is nothing to be ashamed of unless you plotted and schemed to exploit it. Bankruptcy is a right enshrined in law. Using it is undesirable in a perfect world, but when you are in over your head, it is a perfectly viable option. Most all creditors have no issue exploiting the law to their benefit...including encouraging reckless borrowing practices that will lead a person to bankruptcy. Creditors are rarely as pure as the driven snow.
People need to look at their life like a business’ balance sheet. A business will handle finances based on what is in the business’ best financial interest. There is no reason why ordinary people shouldn’t think likewise when they find themselves financially underwater.
Now, if you find yourself in this kind of mess after having used bankruptcy before, then you bear more of the fault.
Tell me more how to exploit bankruptcy
Whenever I see people with these beautiful vehicles, I always think “wonder how much debt that put them in?” as I drive off in my paid off old Honda lol
2004 Toyota Tacoma here I’m 28 it’s the only vehicle I’ve ever had. So I feel you on that people always ask me how long you gonna drive that piece lol I say till it won’t start.
I see those big diesel pickups with 5th wheels and motorcycles and ATVs behind them all the time. All I can see is the $100K+ debt riding on the driver's shoulders. Thinking about it makes me love my paid-for Subaru even more!
James P it's kinda crazy how good Diesel hold their value in Texas at least. I have a 2016 Ford F-250 lariat. Got it for $49,000 which is a steal and I put 84,000 miles in a year in a half. It's still worth at least $43,000 trade in.
Interesting - I guess Diesels are a different market. I'm not a pickup truck kinda guy, but I wish Subaru would sell their Diesel stickshift models here in the US like they do in Europe! Torque for days!
James P they have to be. I was in shock when I went just to see what it was worth and was like "are you sure O_o?" Lol.
That Dave is a truly intelligent, altruistic, and successful person... yet has issue getting in people's drama makes me love this channel.
I did it and I’m happy so far my credit score went up 100 points, i have savings now, I’m not drowning anymore!
Mr. Ramsey, THIS IS my all-time favorite call and advice I’ve seen and heard from your show!! You were direct, realistic, and set a plan that gave this caller HOPE! 🙌🙏👍 So encouraging for me to witness. THANK YOU!
Michelle Byrd you’re hot
Bankruptcy is the best option for her
Am I the only person who watches Dave Ramsey videos not for financial advice, but to feel better themselves. Seriously. Listening to the people who call in make me feel better about myself.
I've been saying the same thing for a few months
🐂
Yeah you are the only honest person admitting it
Very true
I don't think it's schadenfreude. It helped out my situation into perspective showed what I could do on my own.
“130,000 in vehicle debt what do you a tractor trailer?” 😂
Sounds like bankruptcy to me having that much negative equity
“I’m doing great!! ... when should I file for bankruptcy?!”
Marbles P 😂 I know right..
I would abuse the bankrupcy law
.... 'nother day in paradise
better than i deserve!
She does chapter 7 bankruptcy she can relieve herself from all this debt ..not have to worry about the hassle of getting other loans and negotiating Even a chapter 13 she can negotiate not worry about them trying to collect on her
I don’t agree with Dave. Your credit is going to be destroyed either way. So why not file bankruptcy.
Right
Little late, but Dave hates credit either way.
Absolutely
There’s life after bankrupcy . You just learn from your mistakes move forward .
@@robertwhite6203 True, I filed bankruptcy through John Orcutt a couple of years ago....best decision I made!!
Bankruptcy gives u a fresh start.
Ramsey did it. So did our esteemed president .
Warren Katz the esteemed President bit is sarcasm isn’t it ? Please say it’s sarcasm please
@@hollyhocks7360 yes of course
He’s the president of arguably the best country in the world and a multi billionaire. I would say he is esteemed?
SirAwesom he’s vain not esteemed
@@innertubeztwo totally different things
come on Dave, she could file for bankruptcy if a chapter 7 she can liquidate her assets and get rid of that debt and learn from her mistakes,If she can't do chapter 7 then chapter 13 is a payment plan she's still going to work a lot of things out and negotiate the loans all that stuff. This is more of a hassle What you're getting at is it's still going to put her in debt
Right because what happens if (just to say) the bank won't give her the loan for the difference.....what would happen then???
@@keishakei7872That’s what happened to me. Her debt to income ratio is too high for a loan no matter how high her credit score is.
Similar sitiation...I'm currently in debt for 50k on a truck and camp trailer...pooping my pants realizing I'm married to these two contracts for over 5 more years....stupid tax in full effect here everybody....I'll never finance anything again after I get myself outta this mess...
First two minutes...painful
Chapter 7 bankruptcy is an important option for low-income Americans to have access to a fresh start. At our website, we screen to see if people qualify and should file for bankruptcy. It's a great chance to get a clean slate and people shouldn't feel stigmatized because of it.
I agree
Sure ! If I ever have to I’d keep it Myself & not discuss my personal business .
Bankruptcy is only okay when your income is far below what you owe to your creditors. during bankrutpcy you have to go through what's called a "means test", if you pass meaning you make below the average salary for a single person then you can file bankruptcy, if you make more than that then you aren't allowed to file chapter 7 and have to file chapter 13 bankruptcy which is a repayment plan for i believe 5 years.
There are people that file bankruptcy every 10 years... it’s not the end of the world.
Dave's been there, and he will recommend against bankruptcy every chance he gets.
Those people are called “shitbags.” Every ten years? Financial management isn’t their issue. It’s being a friggen unethical degenerate
Just file bankruptcy
Problem solved
Just file bankruptcy if the pain is that bad and your income is low enough. Bankruptcy isn't hard to remove off your credit report
Man, you just settled a lot of my nerves thanks for this insight Dave and thanks Jessica for opening up about your concerns!
3 years is not as long as it seems. You can do this!
And I thought having 9,000 left on my car was bad
Credit union isn’t going to negotiate until you miss a bunch of payments.
That's true. I work for a credit union and we wouldn't do that much unsecured even if you have great credit. Most likely, she'll have to let them repo everything and make payment arrangements. They're basically stuck with most everything.
I wouldn’t let the bank repo the car just cause they come get it doesn’t erase the debt they will sue you for the balance after auction causing a public report dats 25% of your net income each pay. Repos look bad on report even Dave Ramsey filed bankrupcy smh
Made me realize I'm doing okay on debt. In a pickle now, but once I'm not adding extra debt, and once I have my nursing degree I'm gonna work my add off to get that stuff paid off!
Is nursing that well paid?
Unless you have been thru it , it's very hard to comment . Every country does it differently.
Getting multiple vehicles repo'd is NOT better than filing bankruptcy and selling vehicles they're upside down on is not going to help their medical debt situation. It essentially means they keep the debt from the vehicle, but none of the utility of paying for a vehicle. Dave is right about a lot of things, but these people already pay for a home; a secured asset. They can absolutely keep that home through a bankruptcy. They make a very comfortable income. If they file, and they retain just the home and the leased vehicle, they can buy another cheap vehicle cash within a month or two and recover from the bankruptcy very quickly.
Dave has tied bankruptcy to an emotional endeavor like divorce and it causes him to lose sight of his financial genius sometimes. This is one such circumstance.
Note to everybody Dave Ramsey as of now is worth $55 million it's easy for him to sit there and try to get people to avoid bankruptcy however he filed for bankruptcy back in the day and alleviated all that debt I think that's the best option for this person is bankruptcy
While I do agree he's being a bit hypocritical on his stance on bankrutpcy, he did however pay back his creditors even though he didn't have to post discharge.
I am just celebrating 20 years as a 911 dispatcher having been able to save lives by grace of God, and perhaps just good luck. But financially I am devistated. To a tune of 50K, credit cards and I assure you a tough NY living here on a civil servant life. I never thought of taking my own life until this, it seems no matter what good I have put out, I just won’t get that break. I don’t begrudge those with money, I thought I was smart all along. I was. I lived a good life, it just caught up in small ways. With so many people suffering from serious disease it makes me feel horrible even complaining. How I wish I could end this all, in a positive note. I will return to work, I will give my all to save life or at least be the last caring voice a person hears, but in my heart I’ll be the one in pain. All to the tune of the almighty dollar, and an angel I just don’t have on my side.
Kaidosbuddyagain Doberman oh my goodness... You don't realize how valuable you are... You are the angel on earth 🌎 seriously?! You don't need one you are one... 20 yrs being a listening ear for those people in distress?! Wow idk how anyone does it with such grace! You know what? 50k in debt that's a lot for some people or just a bit for others at the end of the day is just material things... Not worth it! Keep being fabulous an s plug yourself to a good church family 👪 take care ❤
karydiaz74 you are a very kind person. I thank you. I know as humans we don’t typically allow others to stand too proud, and certainly no hubris. I’ve made plenty of mistakes, certainly. I do hope that when I’ve given my best tho, that I’ve helped people on the worse day of their lives and I have. From the newborn to the ninety year old, I’ve truly given my best to them, often it was a rewarding experience, other times it was just sad. Like all people I can’t help but wonder how much better I could be if not for those burdens that keep me awake with worry, I can only imagine. Thanks again!!!
How do you get direct advice from Mr. Ramsey ? Is it only through calling during a live show ? My wife works, I'm a stay at home dad. We have one income and two of the kiddos are toddlers. Feeling hopeless 😩 but we are all healthy 🙏
5th wheels are very popular right now. there are a ton of people in Texas and florida that still need places to live. There are a ton of people that are full timing in rvs too. Find the right place and you could sell both
I can answer this b 4 I watch video based on title so since I declared bankrupt 2 years ago it was honestly the best move i did the positives out weighed the negatives u ask what r the negatives stays on credit for 10 years score goes down can't buy house for 4 years unless fha then 2years and that's about it honestly now positives u get to keep ur house if u want all ur unsecured debt gone not student loans u get to choose to keep ur car or not none of ur retirement gone it's comes down to this if you kno paying off ur debt will take longer than the time to save money to buy a house which is around 2 years do it I mean especially if u have a lot I had bout 80k that would've taken longer than 2 years than you have to add years ontop if u want to save for house that could take 4 to 5 years I rather file get it over with than take them 2 years and save for a house and build back my credit within 2 years my score is 695 exactly what I was b4 I filled 2 years ago
Byrant Taylor I’m glad I came across your post because I’m about $80k in debt. My dad said it was the best move he made 10 years ago. Like if the goal is to cash flow everything in the first place and not be concerned about credit why would a person choose to go through the emotional and financial hardship?? I agree with the statement “it’s like getting a divorce “ but more like you’ve been married to a toxic person brainwashed to think that’s what marriage is about until you stop being concerned with keeping face and discover that a divorce was the greatest thing for you.
I’m in the same boat as you guys but I’m 40k in debt. I’m going to file soon.
In some situations you do what you have to do . If have to file bankruptcy so be it . It’s nothing to be ashamed of it gives you a fresh start ! Also stay away from in store credit cards they will trash your credit ive Clark Howard say it .
I can not believe they bought these cars....LOL what were they thinking
Seen it many times in many boom times. Things are going good (in the oil fields in this case) they buy lots, spend lots, and save nothing. The bust comes along and they are left with a reduced income (or no income) and lots of toys they cannot pay for. I've seen it happen with Forestry workers, oil field guys, home builders, and even farmers. The moral is save money when times are good and assume things will bust at some point!
Filing bankruptcy is so much easier than some people think. Dave is flat-out wrong. Don't look at BK as a moral issue. Look at it like the businesses do: as a strategic issue. Do the benefits of BK outweigh the negatives (and for most people in debt they do)? if the answer is yes, then file. Most people who file BK keep their houses and cars. There is so much negative and incorrect information about bankruptcy out there. Don't believe me? Ask someone who has filed a chapter 7 and see what they tell you. Bankruptcy is awesome.
Chapter 7 is rare. 99% of people have to do a Chapter 13 which is basically a payment plan.
U hit on the head
Keeping your home and car is more important than worrying about consequences.
Wow, I think people should lose everything if they declare bankruptcy. Keeps more people from pushing their responsibilities away. The way I see it... if you want a "fresh start".... Then you can lose it all... so you can start fresh....
My parents are in a deep hole. They don’t even know how deep it is but if I had to guess I’d say $300,000 easy. They raised 12 kids, my mom has some medical issues and doesn’t work, dad only makes about $50,000/year
Do you think BK is the way to go for them? Even if they do lose everything they can rent and I think they’d be a lot happier.
Have them see a lawyer. You and them will sleep better.they can never pay that kind of debt. Bankruptcy will wipe it away. Give them a fresh start. Our esteemed president did it a bunch of times.
Question... Dave said to save $1000 and to stop investments. The only investment I have is my TIAA retirement which I have $100 a month put in. Should I close it out and take the money to help pay off my debt or should just let the money sit. My husband just went back to work after being unemployed for 8 months. He is making $600 less a month and we are now over $1000 a month in the hole. Every time I try to suggest something to try I feel like I’m hitting a brick wall with my husband.
Keep the $450 lease, better than paying $7k to get out of it early
I think the most surprising thing is with all that debt she still describes herself as "great" ok then! Stay positive.
Tad Meissner lol
Lol
I dunno, maybe she should just run out the lease and hand the keys and the car back to the lease holder when the time is up.
crowtservo exactly or pay the termination fees
This man is so full of shit.
I filed chapter 7,and 2 months after it discharged,i bought a 3 year old Acura at 2%.
The key to filing a BK is to do it while you are still current on your bills.
Your credit report will show no late payments,all credit will go straight to the BK.
My score was 640 after my BK.
2 years is a lot better than a 5 year repayment plan they’d likely have to do to in a bankruptcy because I’d bet they make too much for a Chapter 7.
This is the problem with Dave's advice, what if the credit union manager says "Sorry, we're not giving out huge unsecured loans". This whole premise is based on the credit manager bailing them out. If they got into this huge mess to begin with, what credit manager would give them even more loans, and unsecured ones at that? I wish people would call back and say how it ended up turning out.
"what credit manager would give them even more loans, and unsecured ones at that?"...Because the credit union already has large unsecured loans since the vehicles are upside-down. If they don't give the loan the couple will file bankruptcy and the credit union won't get anything. If they give the unsecured loan they at least have a chance of getting their money back. The credit union manager will probably recognize that he isn't in a good bargaining position.
Vehicle loans are not unsecured. The bank can repo the vehicles and still gain back the money from the sale of the vehicle at auction (maybe 75% of it's current value). If they give an unsecured loan to these people (who obviously aren't great with money), then it will end up being a total loss for the bank.
I'll try to make it simple. Let's say a creditor owes $50,000. on a vehicle. The bank repossesses the vehicle and sells it at auction and gets $40,000. They then have a $10,000. loss. In case of a bankruptcy they will be unable to pursue the creditor for that loss. So in effect $10,000. of the vehicle loan is already unsecured.
If they instead give the creditor a personal loan for $10000. and prevent the bankruptcy they then have a chance of getting the $10,000. back. If the creditor doesn't pay back the $10,000. they then have a $10,000. loss. So in either case the bank is in the same position.
That's my "concern"; he has given her the answers she again refuses to do the right thing!!!!
Amazing turnaround!
the credit union will call her bluff when they see her credit score is still good.
Creditors are surprisingly difficult to deal with sometimes when your payments are current. Guess they figure do not fix it if ain't broken. Much more amenable about 3-4 months behind, but need to be ready to act if they still refuse new loan (which they should, not that it will change the later bankruptcy much)
I got cancer when I was 28 and my insurance wouldn’t pay for it so I had to quit working to get on Medicaid to save my life. I haven’t been able to go back to work for 9 months and I have no more money or anyone to lend me. I don’t know what to do. I can’t go back to work for at least 3 more months...
I’m a bankruptcy paralegal, and this is absolutely HORRIBLE advise. He is NOT an licensed attorney and should NOT be giving you legal advise. Please talk to an attorney if you are considering bankruptcy.
Spoken like a true lawyer.
When you can't fix it, its obvious
Dave dove in and took his time...great job! 👍
meanwhile i'm driving around in a $2000 subaru with split-boot cv joint fixes i did on the weekend -- and i own a 1.5 million dollar real estate empire
eatme must be nice
Sounds stupid.
What’s the point if you can’t enjoy it lol
I'm confused on the car situation. How did $56k become a 19knunsecured loan
I'd love to hear how this caller is doing today in 2021
Great advice
Look, i love Dave Ramsey and understand and agree with 99.9 percent of everything. Bit, the problem i have is that some if the advices he gives is completely out of touch with reality. I mean go to credit union and tell them you have a 19k unsecured note, because car is worth 32k in kbb. NO credit union or bank will "ok your right sire no problem". None None at all.
I am not sure you are right on that. They have a large income, and repossession typically leads to a huge loss for the bank. If they qualify for the loan based on their ability to pay the 19,000 loan, and surrender the car for the bank to sell, the bank would end up ahead. I don't think this strategy would work for someone making half what they make, but I could see it working when you make over 100k a year. You could be right though. Banks don't always do what is in their best interest.
Except mine.
Yes a bank employee should logically go with Daves plan its the best outcome for the company. But.. Most employees are poorly paid and treated by their employeers. Frequently employee's have no power to approve anything today so the banks own rules create loss. 90% chance they employee doesnt care and if they do the bank wont let them take the proper course. Business in America now.
0:53 Uh Oh!!! $130,000 Car debt. Here we go!
Hey did anyone answer your reply?
Not yet.
Why, why whyyy people in US buy new overly expensive things?
cause government defends them when they dont pay it back
Because the rest of the world is poor
I wish there was a follow up. I would bet they didn't get beaters to drive. They are way too bougie for that! Lol
I agree with everything except the leased Lincoln. Dave wants you to borrow $8,000 and lose the leased car today. Meanwhile you can keep paying $450 monthly for the next 20 months which equals $9,000.
Borrow $8,000k today and drive around in a $1,000 non reliable car or keep driving your new car for the next 20 months for $9,000($450 monthly) your choice
Nimsiv thats exactly what I thought..
leases don't work like that. you still have to pay the rest when the lease is up
ae4xo huh? You lease a car, lease ends, you return the car. Completely up to you to either buy or return.
ae4xo. On very few cases is that accurate. On most leases, you return the car (you can buy it if you want, but aren't forced to)
Nimsiv. There's a third option. She could go to a lease exchange website and see if someone is willing to take it over
Why not just live in the 5th wheel?
I had an 18k car loan I found someone to buy it for 14k and I used my savings to pay off the rest
I hate going belly-up💔
Thinking about the cons of bankruptcy assuages this mental agony.
It’s the only option when you will never get out of an extraordinary amount of debt
DavinR16 The nuclear option.
What about the people that loaned you money, its OK to cheat them?
Billy Bob nope but I'm sure that if someone gets to the point of bankruptcy that person will not get their money anyways
@@BillyBob-ir6lx what if you stupidly signed yourself to a bail bonds worth $20,000 for your sister, under the promised your sister and mother would pay it and then they refuse to? Btw the bailbonds got back their money, this is just the 10% fee for using the service
This all helps "IF" she can get that stuff sold for what she should.
She sounds smart... just made some terrible mistakes
Nah definitely stupid
So why Did Dave file bankruptcy?
Did he say he had no options?
Man pay $4000 for BANKRUPTCY make all that debt go away & after save 15% of your income become a millionaire in 30yrs
She needs to read: "Rich Dad, Poor Dad" 🙄
Rich dad poor dad is a pile of dung. The author lied about everything in that book and he was never brought up that way.
On the substance of the book, it has next to no helpful information on budgeting and the sort. It’s documented that the author kept it vague as a means to advertise his own schemes.
Sorry man I just hate that author.
@@speakdino10 where are your sources?
I just posted three sources among many. The man admires Trump's business practice of screwing over other with bankruptcies to preserve his own personal wealth (please don't conflate Trump's politics with his business practices and rash of bankruptcies).
I despise Kiyosaki and his predatory practices and his useless cash-grab books.
I haven't read all of the comments so it would be nice to see where you obtained your information from. I'd like to analyze it for myself and make my own opinion about it.
@@MusicalProf nothing wrong with kiyosaki. These people just blindly read propaganda on him an well you know, if it's on the internet it must be true....
Rolls eyes at car debt.
Dave loves telling people bankruptcy is never an option yet when he hit dire financial straits he couldn’t file fast enough to give his creditors the middle finger. Like taking marriage advice from a counselor who filed for divorce twice LMAO
The fact the Ramsey is so successful after this speaks volumes
Bankruptcy is why he’s successful lol. He broke free
@@Sorethroatsyndrome amen. Why doesn’t he suggest this.
@@chrisleeland6991 if his audience filed bankruptcy he wouldn’t have a job anymore 🤪
And I bet she didn't do it. There's no way young spoiled oil families will agree to drive junk cars. It's not their nature. I'm one of them.
😂
In my opinion, slackers who knew exactly what they were doing and planned this "escape route" of bankruptcy all along. Disappointed that Dave would help them work the system. Its the reason bankruptcy laws were tightened and now they even want to restrict it some more.
I have to disagree. Financial problems are almost never the fault of the debtor. The creditors are the one's who are to blame for people's problems with debt because since the creditor's are professionals they are supposed to be the adults in the room. They are the one's who are lending the money and it is their job to evaluate the creditor's ability and willingness to repay and make their decisions accordingly. If they fail at that they have made a bad business decision and the debtor's are not to blame for another's bad decision.
@@edermitt willingness to pay . 😅 That’s funny.
Ffinancing options. Keeping car dealers in business selling cars to people who can't afford.
So, if I file how long does it take to increase your credit score and remove from your credit history
Seven to ten years.
Gabriel Guzman Bankruptcy will trash your score for 2 years and after that, your score will recover over time. It will stay on your history for 7 years
Diesel trucks hold their value. KBB might say 30k but you need go look at what diesel trucks are going for in your area.
When a large corporation or even small business hits hard times they file bankruptcy ASAP......when a poor individual hits hard times they should pay everything off including interest, fees, taxes and so on? A lot of these people crawl scratch and pay there way out only to discover they will probably never be able to retire and some even live in grinding poverty.
Looking good getting no where and I call keeping up with the Jone!!
Sorry but that can’t be right. Take a $7k loan to get out of a car loan. Have you heard of carmax? I returned my 2021 pilot back to a different Honda dealership and it was still worth almost dollar for dollar what the buyout was at the other dealership barely came out of pocket to pay off different
The numbers on that F250 don’t sound right. I have a 2010 with 135K miles and I have a purchase offer of $30K right now from CarMax.
gotta file but cant pay a lawyer -- can i do it w phone
If a person is currently self employed and has 28,000 in debt should they file bankruptcy?
if they cant pay the Bill's yes.
I wonder where there at now
Dave is an Awesome answer-man!!!
In sure they are upside down on the vehicles. Just file BK. Its time.
We are thinking about bankruptcy, we have about 30,000 in debt all of it is in collections. We only make about 28,000 a year.. I just don't see any other way at this moment. All of the debt is medical btw.
Amanda Hurt, look up a video of Dave Ramsey showing how to negotiate collection debt.
The step by step instructions should be something like: Stop paying on collections if you haven't already, increase income by working a 2nd job or overtime, save a few thousand (I don't remember how much percentage of original total to save), offer collector the amount you saved and explain they won't get anything if they won't accept your offer, GET THE SETTLEMENT IN WRITING AND NEVER GIVE ELECTRONIC ACCESS TO YOUR ACCOUNT.
Good luck to you
Don't declare bankruptcy. Send them like $25/month and tell them that's all you have and if they don't like it you will keep that $25. If they threaten legal action (basically empty threat) tell them they can sue you all they wont but it wont change the amount of money you have right now.
Always ask what company they represent and get a name before you speak to them. They are not allowed to threaten, badger, or harass you in any way. Please look up the Fair Debt Collection Practices Act. Report them if they are causing you problems... they will face a $1500.00 fine per instance. Or you can be like me and let them do for 2-3 weeks and then file 15 complaints against the same company/person. I cost them like $15k for bothering me. It was a nice feeling.
Amanda Hurt number one thing is what is your age? are you young enough to recover? do you wanna buy a house soon? if you're young enough and not looking to buy a house for the next 10 years, don't hesitate.
I bought a BMW 328i that's 2008 and it had 70,000 miles which is salvage. I paid $2,000 for it and $450 to fix it. I am so happy with me car.
I owe $40000 in school loans and I am only worried for that.
I don't go out and try my best to pay way more than what is requested.
But I don't understand why I am always worried for my bills every month. Why 😥😥😥😥😥😥
Did you get and answer to your reply?
Sorry for the grammar. My student loan WAS like yours, but I don't have to worry about it anymore; I got help with mine and it's possible if it's OLD enough.
The honeymoon with the Lincoln is over. Period.
I wish I knew what they ended up doing.
Dave is the best car seller in the world...
“It just sits there and I pay for it.”
WHYYY!!!???
I want a update
I don’t get the car thing. I have a 14 year old car no payments for over 10 years. I don’t need to prove anything I see everyone driving new cars and think wow
Dave makes it seem so easy but it’s not!!! I don’t hv 5000 laying around. If I did I wouldn’t be in debt. Get it!!!
How i can call you plz
Did she ever call back with what happened?
30 k debt wen you make 100k, easy,
That sounds like a whole Lotta trouble, why not just let them go or do the bankruptcy that she was talking about?
Bk is not the magic pill. So many people file for bk because of "legal advisors"