I Don’t Know Where Our Money Is Going 

I was the worst spender ever. $27,500 in cc debt. Paid it all off Cut it up. Doing great now.

Vehicles are the biggest waste of money most people have.

This guy is going to do none of that and proceed to light the $22K on fire.

Why do people blame their children as the reason for having no savings? That is so damaging to children Parents - take accountability please

John's right, it wasn't " I had to" it was " I chose to". I don't think the caller is sick and tired of being in debt.

Oh good grief, take part of the settlement and pay off the credit card and personal loan. Does he NEED a truck? If no, sell it and buy a commuter vehicle. Keep the van because they need at least one dependable vehicle, especially with a disabled child. Keep the remainder of the settlement / proceeds from the sale of the vehicle and begin building an emergency fund. Lastly, go on a budget and stick to it. That's what drove up the credit card debt, which was lack of discipline with their spending.

There are way too many people spending more than what they are earning

"A stealership offered me $30K for the truck---Not interested". He's not going to take any of their advise.

"We're maybe a little insane, but we're not broke". Line of the year. And it's January. Good one!

Family of 6 at 75k they are broke.time to sell sell sell and work work work. Maybe them 4 kids start cutting grass and selling lemonade too.

I’d be retiring/working much less in 5 years and curious to know best how people split their pay, how much of it goes into savings, spendings or investments. I earn around $250k per year, but nothing to show for it yet.

“We just incurred some new debt….” Oh my…..

I don’t understand why people still call in to this show. They say the same thing every time. Pay off your debt, get an emergency fund, invest, give to charity. I don’t disagree with the advice, I just don’t understand why these people don’t get it.

I know Dave Ramsey for 6 years now. Crazy that after my student loans I have never took out any loan ever; never credit cards. Sounds normal to me now

John killed it with a kind but firm mentality shift, and I think it worked. You really do catch more flies with honey.

No one is going to mention the fact that Rachel absolutely hung up on that guy 😂😂😂😂😂

My husband and I don't believe in car loans, either. He bought his SUV before he knew me. We share that car. We moved to an apartment near his work. I got a job under a mile in the opposite direction. I pretty much take the car because he doesn't get a lunch break and I do so I come home on lunch. We are working our butts off to buy a second car cash and stack some paper. I wonder if any of these people live in urban or suburban areas where they can do one car and have one or both spouses walk to work. Before we lived in this apartment, I rode my bike to work and he picked me and my bike up or I drove him to work, I went to work, then picked him up after. (I was working 6 hour shifts at that job).

A .20k..car for a wife that's...a... HAIRSTYLIST ❓❓..😅😅😅😅.smh..

Four kids with a household income of $75k is a big part of the issue.

They can be done with baby step 2 if he gets a vehicle thats 6 grand. Thats what I'd do. Baby step 3 is where it starts to get fun. Its like "wait a minute, ive actually got a little bit of money and i dont owe it all to companies" I understand the idea of the question, he wants to skip step 2 and have the emergency fund right when that check comes, but it doesnt matter if youre in debt.

Stupid car loan debt. Pay cash people.

A 15k truck is a 20 year old truck with issues.

44.6K on house - not bad 38K on vehicles - terrible 7.5K personal loans / CC - bad 75K Income - average Time to make some hard choices and pay this stuff off ASAP. Stop being normal, it sucks.

Just crossed the $1.5M mark in my portfolio, and I can't help but think of Taylor's lyrics, “The best people in life are free.” Investing wisely has given me such freedom. It's incredible how aligning with the right mindset and guidance can fast-track financial goals. I'm living proof that expert advice works wonders!

Great advise 👏 👍

Probably took the dealer up on their offer and drove home in a 75k truck😂.

This isn't too bad if they are committed just trade the truck if it's worth $30k and you owe $21k you have a $9k old used truck but that is gone, with settlement clean up the loan and credit cards, and put some towards van in 18 months could easily be debt free but you have to want to do it.

I'm sorry but I'm just going to say it- why have 4 kids when you only make $75000 and cannot manage money? Th ey have no savings and 4 kids, I would never be able to sleep.

I was really expecting to hear sell the pick up take the fifteen thousand from that and use it to buy two cars for cash . Then use the settlement to pay off your debt, and build your 3 to 6 month. Emergency fund with what's left.

Caller after every question: "You know..." They actually do know, you're not the first steven they've dealt with and not that last one either

I am so glad Rachel said 'Great' and not 'Better than I deserve'. 😀

combined income (IF she can work all year round I guess) 75k. I hope that is net. And she got a 21k car after she totalled hers in the accident, and he owes 17k on his truck. So their car debt is half their yearly income (IF that is a net income). They cannot afford these vehicles. Did I hear they have 4 children and 1 of them is disabled. SHE gets a larger car and he gets a beater. She incurred medical debt and could not work for a while. The settlement is only 22k - I wonder if that influenced what vehicle she would get after they knew that "windfall". Would be interesting what the car was worth before she totalled it. The settlement is not high, so she must have been at least partially responsible, well that is bad luck. the 22k do not compensate for her loss of income and the car she lost. She needs a larger car for the sake of the children - he can drive a beater.

They should have harped on the beginning steps: why it is good to be debt-free, the baby steps, budget with Every Dollar, rice and beans. They throw too much info at him that he will not use bc he does not understand the basic principles of Ramsey. (Dave Ramsey would've handled this call so much calmer and would've talked to him on his level.)

Sell both cars... buy two 5-10k cars. Can put the rest to the debt.

highest interests first, then move to lower interests. The rest park in a high yield CD or fund emergency fund

Keep $10k in savings. Pay off the personal loan, pay off the credit cards, and do the remaining amount to the $17k pickup. Keeo the vehicles. Dont mess around with mystery used cars

"Hello John and Rachel. I have a problem. My eyes are bigger than my belly."

Vehicles are not a waste of money if you buy an affordable one that is reliable and doesn't have a lot of repairs. For a lot of people, driving gives them great enjoyment. And having an old piece of junk car that is not reliable IMHO is not worth the stress of worrying that you will break down in a bad neighborhood. You don't have to buy a super expensive car. However, some used cars are almost as expensive as new cars - at least Toyotas are. Some people need certain vehicles for their jobs like a truck.

This husband has only spoken for 30 seconds, and he's already pissed me off...

4 kids draining them

Rachel’s plan is good.

Americans carry an average debt balance of $96,371, including credit card balances, car and student loans, mortgages, etc., according to credit bureau Experian's latest data. Yet, the average salary is only around $55,800 according to Q3 2022 data from the Bureau of Labor Statistics.

Maybe their money went to Time Share Exit Team Like her Nepo father recommended to everyone?

Great advice! Hopefully he doesn't feel like they "have too" replace something in the house and only pay off the credit card then run it back up again.

Rachel and Dr D Completely Overlooked the income taxes required on that $22,750 that will be on Top of their earned wages on that insurance payout. I believe that would be the 24% tax bracket? Whatever it ends up to be will be much less than $22,750.

Rachel is not wearing the same outfit as in the thumbnail.

Rather than just making these folks understand that their value system is whacked, I'd sure like a little more understaning of where it comes from. My kids have these same values and for the life of me I don't understand it.

If they weren’t at fault for the car accident, why wouldn’t the at fault drivers car insurance pay for a new car for the callers wife (unless the other driver didn’t have car insurance)?

In most cases, you should never just be “scrolling through Facebook”. But you got lucky, sir

Why does he have sell his truck makes no sense rachel

I love Rachel

I HAVE to live in Cali even tho I’m a barista with a 50k truck 🗿

Why did they suggest to sell the husband's vehicle but not the wifes'? Weird...

John annoys the f out if me 🙄 Dude’s just too preachy but I appreciate most everyone else on the Ramsey panel.

Health insurance companies who paid all the healthcare bills may want to be made whole out of your settlement.

If they had more money coming in, they could pay all this off in 12-24 months.

Why take a call if you only have 7 min to answer it? The guy is new and you didn't answer his question: what to do with the settlement. Also, blindly suggesting to sell a truck isn't a good idea. The car market is about to collapse, he is the one who makes money most likely he uses his truck for work. The van needs to go.

Damn Rachel just hung up on thay t guy. She does know this is on video right? We can see you deliberately hang up on the guy.

Elon Musk and Zuckerberg even have loans and debt.

Uber eats is terrible advice lol

She cut him off on purpose haha. She lying.

The hosts are NPCs

There’s no Money is Fire fighting? You just live in a terrible state. CA fire fighters get paid bank.

So funny how they keep writing down random lines on their papers & fidgeting with their fingers. Do wealthy individuals not have patience?

I like how his car is being sold but not the wife's car. Why don't they both move down in cars? Or, honestlym both cars are fine to keep. Both cars are just at 50% of their household income.

Rachael math is wrong. If he sells his truck for 30k, and get a 15k one. 22k settlement will go towards her van. So that would leave 8k left. Where is she getting 15k? As a firefighter, he may not be able to get a second job, depending on his hours, and his other job duties when he is not in the field.

As if Rachel understands any of this coming from her nepo background Cmon people Please

Adults scroll facebook? This guy has more problems than Dr. John will invent out of thin air.

Second

Wow, Rachel, those cigarettes aren’t doing anything good for your voice.😉 Relax folks, it’s a joke and I’m sure she doesn’t smoke.

First

13k of equity in the truck and he says he's not interested. HAHA laughable

If you want to live debt free with a family now starting out you better be making 300k a year