I'm $110,000 In Credit Card Debt! Should I File For Bankruptcy? 

Inspections done by experienced experts. If you get any push back from the seller on any found issues. You walk away.

Ya I got burned, everything was cheap,those 69.00 home Depot toilets don't flush well.After a couple flushes.oh well.

Yeah man don't give up. You can do this. You have a bunch of people pulling for you and wishing you the best. I know I'm your fan. You had job loss, created a side hustle then at over 50 you get a higher paying job because your a winner.

@@roberthuster1503 lol

This is horrible advice. The person is almost 60 years old and his advice is to work like a madman and put 70+ hours per week? And just pay 40k per year, disregarding his expenses?smh

@@CocoaPuff01 GOOD advice ...he has time.

@@CocoaPuff01 GOOD advice - 52 is hardly decrepit! A couple years of hard work and he can retire comfortably.

Ozarks is expensive

Yeah, its a REALLY tough investment. I did 3 flips. First, I took it apart and it was not worth putting it back together.Sold it and broke even. 2nd, down to the studs with 1/2 the house having the floor joists and repaired foundation and third was cosmetic. It certainly wasn't a windfall of $ made, but I enjoyed doing the work. Pretty much a hobby. I'll do another one, just have to find the right house. I cant imagine hiring alot of the work out and expecting to make $. I hired the framing and drywall out on the second. Roof on 3rd. Besides that, did everything else myself.

But, but, but.... I want my cake and eat it too.

Exactly...he should have way more equity than 200k in a 500k house he has been paying on for 18 years. Did he sign up for a 50 year mortgage?

110k of cc debt is a millstone around the neck

@@paulc3749 I agree. The interest on that is crippling.

Yep, there's a tendency to become paralyzed by all the options a

This is such a simple little joke but I am ROARING with laughter :)

It’s been that way since the 90’s. Remember the Carlton sheets commercials?

If it was so easy professional contractors would be doing it. Not regular "entrepreneurs."

That's because he didn't know about it before he first started. If you flip house, that have to be your main job, not a second one.

Too much HGTV on in the house.

Jimmy, who said that? More of your bs

Totally agree!

Yup

Sometimes life doesn’t quite work the way it says it will in a book.

Yep. If a person lives within their means when they are young..and save like crazy..they can have a nice retirement.

@@traveler320ak7 Thats what i am doing, no debt...30 years old...make good money, have a house living VERY frugally...saving a ton every month...the problem is seeing your savings and being tempted to buy a ton of things or just pay off the house completely

How can you be out of debt in 1 year when someone like me has a credit card debt of 120,000$

That makes no sense

​@@victorvaldez760 Obviously every situation is different and won't be the exact same time frame. The point is the problem is YOU and your spending. People want to look for a way out without fixing the problem.

@@victorvaldez760it’s impossible to be out in one year.

Bankruptcy is not the worse thing if you kept up with your mortgage , I know plenty people that filed and kept their homes , they only had credit card debt.. if you took a 2nd mortgage then you are in trouble , that’s point you need to sell and get out of debt without filing but if you have both it’s better to file and sell and start from scratch, within 6 months credit card companies will start sending you applications for a credit with high interest, who cares? You need to start somewhere, just don’t over 20% of your available credit , you make 3 money monthly payments paid in full and you’ll see more credit card companies want your business and from there you build your credit.. you don’t need a college education , you need to understand how the industry works.. don’t believe what they say that you can’t get credit for 7 years, that’s BS .. within 3 to 4 months you’ll be receiving applications, you won’t be able to get a mortgage for 10 years but you will for a car loan.. yet again who can afford to purchase a home these days ?

I agree with you! concentrate on there marriage for a little bit, especially if they have kids

I wouldn’t get an apartment, I probably would buy a condo outright. I wouldn’t want monthly payments if it doesn’t work out

That’s what I do. I agree with u.

💯💯

Declare bankruptcy keep his house

he owes 300. he was earning 165. sounds ok.

@@hvaball150 he’s broke. Not ok

The price of your house should be about 3x of your gross income, max.

The situation is what it is. He has 200k in equity and ought to leverage that to pay down the credit cards. Dave won't mention it but it's a way better option than keeping the credit card debt outstanding and slowly paying that off.

They didn't pay $500,000

Yes because he knew the Missouri homestead amount for bankruptcy

How did you do it? What sort of work are you if I may ask?

😂😂 they all agree with Dave, all of the time

Oh, for sure! How many times does Dave interrupt? Why does he even have a co-host if he's going to interrupt all the time and the other person sit there like a puppet?

All of them agree with Dave. The only one who's not afraid to disagree with Dave is his daughter, Rachel.

@@terriesmith2616 true true

It will be a glorious day when Ken or George build up a spine and say « Dave, you are sooooo wrong about this. »

Hahaaaaa! I can relate! We paid off all of our non-mortgage debt a year ago, but we still have like $55k on our mortgage.... and I flip out over that!

If you have $230 on a card and haven’t paid it off you should be freaking out.

Go for it!

I have $4200 currently. Good thing they had an APR promotion of 0.90% for less than a year.

He has the money. He has 200k in his house. He is looking for a way not to pay the 100 grand.

@@treasurethetime2463 probably. That was my suggestion in another comment.

"SELL THE BOAT!" -Dave

He sounds scared and depressed though.

good point. nice 3rd option!

Cause he only ever lays out a max a 1 option

@@TheDeathvice187 Tell us you barely listen without telling us.

That’s what I was thinking!

The caller subtly hinted he wants to keep 1st house as he mentioned he built it and has blood, sweat equity in it. He is emotionally tied to it and he is trying to find way to keep it. In the end, he may still be forced to sell if there is no homestead exemption on it.

He knows he isn't walking away from it that's why he is so depressed. If he sells the flip house he can get his debt down to 80k, that's manageable on his current household income. It sounds like he has no pension savings though which is a bigger problem down the road.

Even if he wanted to go with bankruptcy, making 115K a year, his assets being level with his debts or slightly more equity might not clear his CC debt. If anything they would restructure it and he still pays that money. Courts don't care if he takes 20 years to pay it as long as he can

It's called the law. And it exists for a reason. If you don't like it fight to change it.

@@andidede3653 Bankruptcy payment plans don’t go out 20 years.

@GenX X i know I was just giving an example

If you listen to him it is a house he and his wife built not bought they built it.

It's hard to predict without all the data.

Even the court house step houses are tight. Gotta hire the lawyer for eviction and to clear the title. Then you really don't know what you get until you get possession.

Yeah I cannot understand his math

I’m not sure why everyone always assumes Dave doesn’t know about taxes. Always tell yourself, if you’re aware of it, Dave probably is also. Even after taxes, they can still get it done in two or three years.

While I do think it would be better to talk take home pay, it's understandable that he talks gross income. Everyone has different taxes, insurance etc, you can go down the hole and never get out. He's trying to keep it simple and quick for a radio show

I'm confused as well. I don't think this was good advice in this case.

30% of 115k is still 80k. 40k into debt, 40k to live on is entirely doable for almost anywhere in the US.

We all go too far in some aspects, we have to be grateful when we don’t take it to the point of having to climb a mountain

The CC debt was probably racked up when he lost his job so I can totally see how that happens if they are living off of the CC. Although I'm curious as to why so much especially if the wife was still working , they should have just did some major cut backs.

Sounds to me like he got a 50k paycut, but was living the exact same lifestyle he was with the extra 50k.

@@Ryan_DeWittkinda hard to adjust to a pay cut like that and not be in the hole

Bingo. Then you throw the taxes onto that $115K income and the $300K mortgage and coming up with 40K a year to throw at the debt each year is going to be tough.

Agree. Dave always seems to forget about interest and taxes when he calculates how fast people can pay off debt.

Which is why he should declare bankruptcy

He isn’t thinking straight and hasn’t been for years. The fact that he racked up over 100k in bills with nothing to show for it means he was living it up on lobster and steak thinking he would be rich from house flipping

He could do a chapter 13 bankruptcy and keep his house if he has too much equity.

In North Carolina the homestead exemption is $35 K unless you're over 65 !

If they could be disciplined they wouldn’t end up where they are. But hope they do.

Turbo debt all I have to say

$115k/year for two people is not enough money. Especially when you're an older couple.

@@nigelstanford4 exactly

@@nigelstanford4 what? 😮 $115k is plenty of money unless you live in downtown LA

Ha, I pay 30k in taxes.

30k really? Smh

@@reese85 yes really

@@danclapper626 All the more reason to live on 30 and DON't USe CREDIT!

exactly everyone can't live that luxury lifestyle

How did you get out of it??

That's okay. It IS the Ramsey show and his protege's are never quite as skilled as Dave.

There is HUGE demand for a skilled person to do small jobs. HUGE! But he seemed reluctant when Dave suggested that. I think he was starting to say something about his job but Dave talked over him as usual. But I agree this guy can't just file bankruptcy and rest on his laurels.

They can but they won't.

I think he said they just did that.

Why should they? Just penalizes the people who pay on time

@@alexarihani2902 Not really, you're already paying 10%+ APR on unsecured debt because of the risk, so they're doing what they can to make sure they get paid back without sending it a collection agency or lawsuit, both of which will probably cost more than the discount on the accrued interest as the debts will be sold with a sizeable discount.

Actually what you do is pay the first payments on the CC and then after 2-3 months ask them to reduce and pay the rest of debt off.

I’ve never made a late payment But don’t they charge u a large late fee? Three years is 36 late payments. $50 a pop is $2000 more

Except when you take into account taxes and interest in the debt...sure, killer advice! 😂

Why would he have to pay anything late if he's current now? Why not just stay current and let the proceeds from the flipped house give him a head start?

Lol thats not how it works😂

Yeah, kind of karma for him.

No sympathy here

If he was running up prices by flipping houses then he wouldn't be in this much debt

It is the massive money printing and bad monetary policy running prices up

Yep he's probably got a 25%APR on that 110k. Ouch. Gotta ditch that burden first.

Why? Makes the most sense to file

I was thinking this too! He didn't mention having kids, so maybe it's an option!

Yes sir

I imagine the flip is in a bad neighborhood which is why it's cheaper.

@@DeepDeepSpace Okay. It's just one of the sacrifices one has to make for a quicker cleaner debt payoff.

@@michaelb.8953 my safety wouldn’t be worth it.. but if it’s in a safe neighborhood I would definitely make that sacrifice…

A flip is usually on a short term like a balloon or bridge loan, hard money at double digits for 90 days etc. He's had it for a while it sounds, so who knows but generally he would need to pay off the note on an investment property relatively quickly. Unless they paid cash, but I doubt it.

We are now in the bad time before the Post WW2 Living with family may become much more prevalent

🤣

Isn't that what most businesses are?

@@mikebarker6979 Definitely not

That just shows Dave’s complexity.

Sentimental value?

@@choicemeatrandy6572 like keeping the wife?

Ego

Some things are worth more than money. If that is the house he wants to live in and cherishes it, it is more than just a baseless asset with a cash value attached. Maybe the suffering and other ways to pay off the debt is worth it to keep the house he wants.

The ego is a hard thing to do battle with

You should be! Why spend that much on Christmas? It's insane and is a perfect example of how weak all Americans are being influenced by advertising or the kids being jealous of friends' toys.

as an option to bankruptcy - either way his credit is shot.

yep - sounds like he didn't have 6 months in an emergency fund when he lost the job. He thought the flip would make that up but since it's failing the credit spiral knocked him down.

what 64? Did he complete a degree in Sociology?

That is nuts.

The group that was once convinced that SL is forgiven along the way🤦🤦