I Can’t Make My Debt Payments! 

And the problem is people only look at each INDIVIDUAL minimum payment. They buy ten things with a $100 minimum payment…whoops now it’s $1000 a month to service my debt.

If it requires payments outside house...you really can't afford it.

And with vehicles, if you buy them on credit, you also have to carry insurance, which in my ONE case that I did so, was almost equal to the car payments. So If the car payment is $500, I'm guessing that the car insurance is very close to that amount. So your $500 car payment is really a $1,000 payment. This is something I've tried to tell others over and over again, but very seldom do they listen. As the daughter of a mechanic, I drive my vehicles til the wheels fall off. I've only bought the one new car and it got into an accident with a Jeep. Jeep vs Toyota, Jeep wins. Frame got bent, so it was totaled, only had 90,000 miles on it too. So I found another RAV4, 120,000 miles on it and it cost more than my RAV was appraised for. But this one will most likely be my last one. I've had it for over 5 years and only added 20,000 miles to it. And I will keep it until the wheels fall off. Or until another Jeep finds me! 🤣😂🤣

YUP!!!

So true

@hankwells2637 dude you have no idea what the mortgage market is like. 2700 payment on a house bought last few years is a cheap house. Prices are insane, insane rates are insane

@@daveavemian5940Just because houses are more expensive doesn’t mean it isn’t stupid to spend that much of your income on a house. There are still 200-250k houses available if people would accept driving a bit further.

@@daveavemian5940 dude cant afford his house, its simple math.

@@matthewholliman1399 250k houses that fit 4 people? are you smoking crack? what about the 50k those houses need to tear up the inside because they're very old? Even 250k houses at 8% interest is about a 2300 payment. That's not a big life saver. Cheap mortgages don't exist anymore

@@daveavemian5940 then he needs to rent. Or move somewhere cheaper. Or both. The math ain’t mathin’ for him to afford this house.

Shoot my wife and I spend $800 a month on groceries and about $200 eating out for just two of us.

​@@NickPlays95what a waste

@@Blittsplitt5 not really. We eat very healthy, all organic, grass fed grass finished meats, etc. we use to spend so much more eating out and now our health is 10x better and we feel better than ever so it’s worth it to us to spend 10% of our income on healthy, nourishing food

@@NickPlays95 Yep in Ontario wee are spending 1400 per month

There is only so much you can go over in a 8 minute span on the phone. He definitely needs a financial coach and help navigate him to a solution to his financial burden.

The guy didn't even know all of his debts. I bet he doesn't even look at the bank statements and has no idea where the money has gone. This guy needs every dollar, financial peace university and the total money make over book. He said he only brought home 5000 on an 88k income, it should be closer to 6200. I bet he's filing 0 on his w4 where he needs to be filing 3 since he's head of household. He's got 2700 in a mortgage and 1100 in car payments. This is why Ramsey tells you that your house payment to be no more than 25% of your TAKE HOME PAY per month. This ratio for his home alone is 54%.

@@Overbuilt.Gaminghe needs to go through Financial Peace University

To be fair, I think George wanted to go through it more, but if he doesn't know the numbers.... Perhaps a follow up call where he faces the actual size of the debt and work from there, would be a good idea.

Agree he should sell the home. I think he said he should have 100k equity. The problem now is who is buying? With these high interest rates he may have to lower his home price just to sell.

@@Westcoastguythere’s ton of buyers, low inventory

Can he just sell the cars?

I did the same thing it's impaulsive buying

@@shionajoseph3248 Perhaps, but last month was the lowest number of home sales in quite a while.

I couldn't even imagine that. Wow.

​@@lot2196yeah, me and my wife solved it by having an in home daycare. Then later we adopted 2 kids.

Keeping up with the Joneses syndrome imho

I think he said 88. But still. They need to dow size.

Sounds just like everyone I see driving around

That’s pretty much every Americans. They all find themselves in situations until it blows up 😂.

Yup, tripped... slipped... landed himself in debt on a water softener!

So rich ppl or ppl with money don’t have car payments?

Why have car payments if you’re rich? By that ish full cash and keep investing and running up that bag

Or like Hostess and kids!

@@reese85 - never had a car payment, even when I was poor. Paid cash even back then. The only money I had to invest at the beginning would have been consumed by car payments. It's literally the difference between being rich and staying broke. Very few realize this though.

@desimo147 but as I said in general. Rich ppl or ppl with money don’t have car payments cuz that’s just false.

Curious, does Ramsey even advise anyone to rent anymore? I thought he was super bullish on housing.

Rent is ridiculous also right now in most states. Not much to save

Rent is damn near the same price and for a family of four? They’d have to move to the sticks

@@AlexPerazaTV thank you!! It’s bizarre that they kept offering other solutions like getting out of the cars by saving cash paying for the amount he’s upside down. Ummmm, he clearly stated he can’t even pay minimums. How’s he saving cash? That house payment was the missing puzzle piece and they just breezed right past it like it was nothing.

I think these 2 need to take the Ramsey course again😊

Yall complain about Dave being too harsh, then complain when people are more kind and thoughtful trying to find other options. Cmon lol

If he works for government there is usually a mandatory deduction for retirement. In SC they took 9% out of the paycheck.

Agreed. He bought too much house. Now the HOA fees have piled up too.

I don’t understand. He said selling house was last resort.

@@lombardo141 George gave bad advice by saying that. Ramsey says house mortgage + hoa should never be more than 25% of take home pay. His is like 60%.

Bad job George and John on every one of

@@businessacc179 its orlando if hes staying for his job he will be very hard pressed to rent cheaper then that sadly orlando top 3 most expensive cities in the US

Their writers for this reality tv show have lost new ideas.

Selling his house is certainly one of the reasonable solutions. However, I think the caller's big issue is not being totally honest with others and probably with himself. He referred to his new fence and water softening system as "investments". He initially said he owed $15k on each of his cars, then a couple minutes later he changed that to $16k-18k. With a take home pay of $5k-5.5k per month, a mortgage of $2.7k, a $50k debt, and I'm assuming not much childcare cost since his wife stays home, his situation is not great but shouldn't be that dire. I have a feeling there are other significant expenses he didn't reveal on the show.

100% agree

Right 2700 mortgage and two car payments what’s so hard to get

@@artbigotti2640 I think part of the issue was he said he had 55k in debt but he obviously wasn’t included his house which we don’t know how much he owes. If someone told you they had 55k in debt and made 88k but were struggling there is something else wrong. If he came out and said he had 55k in consumer debt and 200k in home debt that’s 255k for 88k in income which makes more sense in why he’s struggling.

Yeah and not everyone is perfect like you. Even Dave wasn't perfect like you. That is why he is calling to try to figure this out.

@@danielrn133 Who said I was perfect? Do you always get triggered when somebody points out what not to do? It's called constructive criticism.

@@danielrn133sheesh, talk about an over reaction….

​@@danielrn133you dont have to be perfect to live within your means. You just have to use commonsense. It's not rocket science.

​@elizabethpieters7798 Common sense is in short supply when it comes to personal finance.

They simp pretty hard for wives around here

George will never live that down 😂

I could not believe that one! Poor George…poor 86 year old! I’ve had more friends come to me to say they are getting only $800 per mo SS… but never worked full time. 🤷🏻‍♀️

because every man on this show is a simp

They don’t tell married women to get a job because they are evangelical Christians and they really don’t want women to become educated or use birth control, just babies and husband support.

She's probably got one foot out the door. Women don't stick around for this.

He said something like “I have a wife at home”, so probably a stay at home wife/mom

Yeah if he paid the whole morgage this is usually the case, if not he would pay half and be dept free in record time!

@@nickolaseek3871 You but the parents/husband/new boyfriend will pay monthly on this debt. Also child support for multiple kids in 30% that's if the court is fair and split the debt down the middle 50/50. They don't always especially if he struggles with the 30% for child support and who knows if she doesn't work he'll get hit with spousal support. A coworker of mines son in Orlando is going through something similar.

Sounds like the wife is a stay at home with the 2 kids. 34 years old so I assume young ones. M-F job on salary is hard to make any extra income. Either wifey gets a weekend job or he gets a 2nd job.

The current vehicle I have is an 07 RAV 4. Plan on driving it until the wheels fall off. (I'm the daughter of a mechanic and we did that with all our vehicles.)

What happens if he stops paying just the credit cards? Won't they sue?

@@atorres11720 Eventually, but it might take them a couple years to get that point. They'll spend at least six months hounding him for a payment.

What job is the wife gonna do to make 250 a day? 2k a month only working 8 days?

@jmanrock11 plenty, depending on which part of the country you are in. There are jobs within healthcare that pay well and do not require a degree. Just on the job training and pay 20 to 30 $/hr, depending on your location

@@kayn2756 do you know what the position are called by chance?

Remote, evenings or weekends.

Or just ignorant about it and not dumb.

Yep, landlording ain't for the meek.

@@johannesswillery7855 my sister and dad both got into it, didn't go fantastic for either of them. I worked for a broker who I guess it was working for, and he enjoyed it I think, but every week he'd show up to work with a truckload of trash he'd have to remove from his rented spaces. Ugh that's crazy.

eh he live in orlando finding a place isnt going to be much cheaper then his house payment

@@kidamere2408 2700 for a mortgage payment is a lot plus all his minimums for debts. Need to find a $2,000 two bed room, pay off all debts and start over. May never buy a house again bt at least it’s a fresh start

That won't take care of much of it because they still have to have someplace to live. They obviously can live with just one car as they're not using the second one because they can't afford to REGISTER it. So while they're looking to sell the house, they can just sell the unused car and the other one that has payments (even underwater, getting a smaller loan to cover the difference would help), Then buy a beater/hooptie vehicle that is mechanically sound. And, as Dave says, "Sell everything so that the kids will think they're next". PLUS go on a cheap food plan, rice and beans, beans and rice. It CAN be done. Even if they have to sell everything and start completely over again, with perseverance, they will be successful.

@@alycewich4472 idk if you heard the call bt he said he brings home $5k and the home payment is $2700. Add utilities and they are left with $2k. That doesn’t cover much considering he has a wife and kids. Selling the house is a must to get out of debt and find a place for $2k.

@@alycewich4472 they need to just rent.. 2 bd apt or something and dig themselves out of their huge hole. They are drowning and going to lose the house anyway

It all depends on the ages of their 2 kids. If the kids are younger than kindergarten age, can she make enough to cover daycare costs and some more? That's the real question.

Exactly. So many people who don’t have kids or had them many years ago, don’t get that at the minimum day homes/daycares charge $1000 per kid. So that’s at least 2 grand after tax. It’s a nice fantasy of the “get back to work” commentators that these stay at home mothers are all dr’s, lawyers, plumbers, etc. that can just slip into hundred thousand dollar a year jobs and everything is hunky dory but guess what, waitresses, clerks, hairdressers, warehouse workers etc. also get married and have kids. Unless you make a certain level of income it just doesn’t make economic sense.

Back in the day, decades ago, it was more financially sound for me to stay home with our children while my husband worked. My part of the equation was not have a car for a while and to stretch the food dollars until they were paper thin. I figured out when the food sales happened (one week it would be beef, one week chicken, Thanksgiving was turkey and so on). There was also a drug store that carried lots of canned and packaged foods. About once a month or so they would have their one pound packages of pasta on sale for 25 cents a bag, no limit. So I would get 20-25 bags at a time. Then I would go home and dinner would be, Start with a pound of pasta and make some sort of topping for it. We also ate lots of rice and beans that were cooked from scratch (much cheaper that way). We also shopped at thrift stores before they were cool. We entertained ourselves at home. We were also renting a lot that had 2 houses on it. So we lived in one and sub rented the other one. It took us 10 years to pay off the enormous debt that had accumulated. Both sons are excellent with their finances. So they learned lessons that they might not have learned otherwise.

That channel is a farce and just for novelty sake

@@ykook7000 not true at all. Going through financial statements to find what the real spending issues are is what some people need to see. Is he over the top sometimes? Yes. Does he provide real wake up call for people with spending issues or behavior issues with finances. I think he does 100%.

Gross does not equal net pay. His mortgage alone is over 1/2 of his net pay.

⁠​⁠@@InternetUser._ he said he has 55k in debt but he obviously wasn’t including his house in his debt so we don’t know his house debt. After rewatching it he has 2 much house on top of 2 much in vehicles with huge payments. House and car payments are 3/4 his take home.

Caleb hammer is total joker. Can't stand seeing his bs videos pop on my feed

You don't get to stay at home if you spend money that isn't there causing you to not afford life

Me and my wife solved it by her running a daycare in our house, that way she got a nice income, plus lots of tax write-offs.

yes but that is hard on the marriage because the couple is rarely time together

​@@kbanghartslave labour couldn't think of anything worse than looking after other kids while trying to look after your own

I don't think caller said if his wife was working or not. Why didn't the hosts ask? Also, they did not inquire how he could increase his take home pay. He is probably having too much withheld if his take home is only 5k. Perhaps contributions to retirement coming out of check. Why did they not explore any of this?

All they do lately is give a free book and the everydollar app, it’s ridiculous.

Assets that can make one successful in life

I. Forex 2.Stocks 3.Shares

You are right.

But I don't know why people remain poor due to ignorance

It's not ignorance but unprofessional broker in the market

Same here. I haven't borrowed money for any reason in nearly a decade 😂

Credit score affects your insurance rates. It's not just about borrowing money.

​@@megalodon1726yep, and is looked at when being considered for certain jobs.

Well I'm glad you're not broke. Good for you. 👏🏼 You are wrong though, when you say that only broke people care a lot about their credit score because I know plenty of rich and well off people that care deeply about their credit score and check it once a week.

Same.

Talking about feelings.

Dave is both more knowledgeable and shows more empathy.

​@@joesmith3590where in the video did they talk about feelings?

1:50. lol dude

His response to a credit issue is what about your feelings. lol.

You don't know what his benefits cost or 401k contribution is. He's probably not lying.

He may have health insurance for his family being deducted. He definitely has taxes being deducted. Some employers mandate a retirement contribution (one of my jobs does this, I cannot opt out, as its a federal job). I have to pay parking out of one of my salaries or I can't park at my job (its at a hospital). His salary numbers don't sound wrong to me.

Seems like they "dropped the ball" on this caller and he seemed like he was so over-whelmed and needed help.

Nope, it’s just poor decision making

​@@martinreynolds5905exactly. Too many excuses for this behavior.

Yes, inflation happens, regardless of who is in office. You have to make good decisions.

Crazy JOES AMERICA !SAD!

​@@kbanghartRecord breaking hyperinflation IS the result of who's in office now.

when the tide goes out, you can tell whos skinny dipping WB

There have been times in my life where I have not paid enough attention until the water is up to my chin. Fortunately, I'm better at recognizing it now.

No, it's also about insurance rates

@@kbanghart I've never heard of that. Is this a new phenomena?

That’s not true. You can’t even rent certain apartments if your credit is bad

@@alycewich4472 not sure how new it is.

Yes, at the end of the call, I just about fell out of my chair. "Well we're not using the 2nd car because we cannot afford to register it! That should have been one of the first things he said, not the last. Then that car needs to go yesterday!

Man I used to work with a coupe that made 400k in a bad year and they had to use the bonus to pay off the credit card every year.

88k with a family of 4, is not enough assuming that the wife doesn’t work

Agree...he needs more support than these 2 guys gave him. You can hear the desparation and defeat in his voice

It could be healthcare costs and/or retirement

@@djtomeson then say that. It wasn’t even mentioned by the guy, or the Ramsey crew, so I imagined they either don’t have it, or it’s negligible (though, hearing this idiot, that probably is where it’s going) 😂

Health insurance maybe?

Are you forgetting 7.65% payroll taxes (Social security and Medicare)?

GET a $1000 - 1200 per month rental? No rentals go for that anywhere, especially Orlando. Are you meaning for THEM to live in or to rent out? Are you suggesting they sell their current house to buy the rental? Why would they try to get current on the mortgage of a house they sold? I'm not sure if you're being sarcastic, or if I just need you to explain this better so I can understand the comment.

@@CarlaQuattlebaum Getting current on the mortgage was incorrect by me, I meant getting current on other debts (it seems he was behind on most everything and late fees were stacking up)

@@izzeww8487 you offered more help in a paragraph than either of them did for the whole segment lpl

@@Joshmarmolejo_ this is actually pretty normal unfortunately

@smithersrob - yet another person with absolutely no clue what the mortgage world is now. Dude there's no half a house. There's no houses that are going to be 1400 a month. That's a pipe dream of the past. With current interest rates, everything in america now is 2500-3500 a month. There's no feasible way to lower his mortgage payments. They have to earn more income. 80k is not enough for a family of 4 to be ok in america anymore, unless you have a very cheap mortgage from 10 years ago

Remember, the $1100 is only for the car payments. I have found that the car insurance is as high as the car payment. So I would tack on another $1100 for that. Cray cray for sure!

Maybe not, I think maybe they just take it off the final price

💯

Heck no. Do you guys not pay deductions and 401k where yall work?

Health insurance for a family of 4

The adrenaline from getting punched in the mouth hadn't worn off.

So why do you need an 800 credit score?

And that's what they suggested.

My son is in construction and uses CHM. Recently had a baby and it covered the medical bills. Took some time for the payback. I think it's a viable option.