Should I Use My Savings To Get Out Of Debt? 

Paid off my house this month, only took seven years on a 30 year mortgage. Best motivation was printing my 30 payment schedule and keeping it on the coffee table. When you see the money wasted on interest you get super motivated to get it done with. No more banks, no more loans.

I spent 2.5k on a 16 year old car 1.5 year ago and it runs great... I am not going to finance anything. I also live on a bus route so I'm willing to take that if need be. I am paying off my 78k student loan by April 2021. Thank you Dave!

My dad put me on to Dave Ramsey when I was maybe 13-14 I’m 27 now, this man has blessed me with so much knowledge and helped with my financial life.

Since watching Dave’s shows, I’ve started to notice really deprived areas with small houses have brand new expensive cars sitting outside, and large houses in nice areas have a little old hatchbacks sat outside

Blue Collar people show their status with their vehicles. They often have a hard time transitioning away from that mindset.

Pretty much this guy is going to do what he wants to do. I can tell by Dave's voice that he knew he wasn't going to follow his advice.

Why do people call Dave, thank him and then try to speak over him? Explain your situation, articulate the question and then let the man speak. He’s the one with the wisdom or you wouldn’t be calling. Sheesh. Thank goodness for the mute button.

Love how savage Dave is with that mute button haha

2 Debts Dave hates the most. 1. Credit cards 2. Vehicles

I don’t really understand these kinds of ppl. No debt, except for $24,000 truck, 30 Gs in the bank. Sounds like a no-brainer.

So many people buy trucks that they don’t use but a couple times a year. Save the 600$ a month and rent a truck from enterprise or Hertz when you need it.

I felt a little sorry for him until he said he's putting 40 thousand miles on an expensive truck for a fricking hobby. I assumed he was a contractor and needed a truck.

Here's another thought. You don't have to pay it off at once. Just drop some cash into it to reduce the interest.

One caveat: make sure you change the behavior that got you in debt in the first place, otherwise in a few years you'll have debt again without the savings to pay it off.

When Dave mutes the caller and closes the call is my favorite.

Caller: I have $300,000 in Debt... Dave: What's your household income? Caller: eghtsawrvvhyopdeweccjkc Dave: Sell the car.

Dave is just showing off how big his work desk is with this video really. that desk is HUGE!

I have not watched the video yet, so I don't know what Dave will recommend, but I had a similar situation occur. In the past. A close friend of mine was paying bills online while the two of us were talking about a few things like debt and bills. My friend allowed me to see his credit card debts at a particular bank. I noticed he also had a savings account at the same bank with a large balance, enough to pay off his credit card debt completely. I told him he was spending money on interest for no reason, that he should pay off his credit card debt and then use his freed up cash flow to save again.

I love when Dave says "you can do whatever you want......." Somehow that statement is a mental jolt!

I went to the bank to get a cashier's check to buy my 2013 Honda CRV a couple years ago. I was asked to change my mind and take out a bank auto loan instead. I asked how much was the loan interest and how much was the interest my savings earned. They couldn't argue with me!

i paid $100 for my truck, spent $1200 to fix it to be road worthy and have been driving it daily for almost a year with no other issues...you can do it cheaper if you try hard enough. The thing is i dont care what other people think of my vehicles...

This guy doesn't want to give up anything!

I love it when people try to convince Dave they have a better plan. Dave's right. People neglect to price in risk. It's amazing how far your paycheck goes when you don't have a bunch of payments. It was a real eye opener when Dave informed him he was paying $3000/haul.

Not way I would forkout 33k cash for a depreciating asset..sell it

LOL he just shuts them up with the button. Hobby is too expensive

If I were that guy, and I wouldn't give up my hobby. I would sell the new truck, buy an older truck that can be used 25x a year, and buy a gas sipper for my regular driver. You can buy a truck that can haul for under $10k, especially if you aren't driving it every day.

I get wanting to leave something for your loved ones in theory BUT one could argue and go "why worry about that? Most people don't use money correctly hence why Dave is in business so why worry about leaving a ton of money behind for others to waste?" Make your money work for you and give as you see fit to causes and things that you desire to while you're alive to see the blessings.

It's simple though, cash net worth is savings minus debt anyway. Once you owe someone, your savings aren't yours.

Sell the truck and take up bird watching for a while.

Pay off the debt, continue as before. No harm having fun in life, it's part of it. Use the 600 to start saving for retirement.

*Unless his savings have a good rate of return he should avoid interest on the loan!*

Getting a clear perspective on vehicles is the best thing Dave has done for me.

I want to create a card that when you use it... just like a "Round the Savings" program, it rounds up and puts the remainder of the dollar amount into the debt of your choice automatically without having to think about it...

Dave... you are one of my hero’s!!!! You are helping so many people!!!

A good used 10-15k diesel truck will do that and go for 500k miles

When you call in to get Dave’s approval but he hits you with reality. 😂😂😂

I don’t understand how grown people can’t figure this out. Your wealth/security is more important then your image.

He sounded like he was on board to debt freedom until he mentioned his " Hobby. "

I just started listening to you a few days ago and I don't know what your credentials are broke this guy down and figured him out pretty quick keep up the good work

DUMBEST CALL EVER. Until you get rid on debt with interest what are you saving for ?? Get rid of the debt first and be FREE !!

I just Paid off My 2016 Toyota Tundra. Great feeling. It was hard to pay that cash but I had to do it

I love it when callers try to hide the real issues cause its their pet spending habit. This guy is like i love the security of having the cash in savings while he's trying to justify 25k on a hobby without any retirement what so ever. So he really in a totally unsecure position for one reason his hobby. That's really no difference in that, then the mom who has 50k car and justify it by saying it had headrest. Selling the truck delaying pleasure of hobby till you get baby step 2 debts, 3 full fund, 4 retirement started 5 kids school started (if you have any), and if you want to at 6 then budget for hobby as you pay extra on house, but best to just bite the bullet and pay house. Then budget your hobby in 7 with no debt, savings taken care of and full fund that's not an illusion but is truly apart of your worth above zero. And above all dont go back in debt for anything ever again.

Sell the car. You don't need to take 20k from a savings to pay for a car...its not worth it

The truth rises to the surface and floats.

Salary is not household income. Take home pay is. That question always annoys me because people don't answer accurately.

He went through ALL of that and then came out with “I have an expensive hobby.” Bruh.

He does NOT want to give up his financial cushion. But he would rather pay on a $411 monthly installment loan? With interest on a truck payment TO SOME STUPID BANK for multiple years with 30k sitting in the bank to payoff the entire loan. Then he is destroying the value of this truck with high mileage driving which it will not be worth anything anyway. I would RATHER be paying myself then some creditor.

The amount of money that people spend on car junk never ceases to astound me.

Shoot my hobby was tournament paintball and I had to put that on hold so i can pay off debt. It sucks because i dont do much on my weekends anymore other than trying to find a 2nd job but put it off now so in a few years you can do it debt-free.

Sell the truck and buy a cheap reliable truck for 6-8k. Then buy a cheap cobalt, civic or corolla for 3k. For under 10k you have 2 decent paid for cars. This is something not in Dave’s plan but I think it’s a great idea. This is for people that paid off their car or paid cash for a car and have a fully funded emergency fund. I tell people to put 50 bucks a week in an envelope for a car repair fund. If you generally buy a car valued at 4,000 bucks then keep funding your repair fund until you get to 4,000 bucks @$50 per week then stop. So now you have 4,000 in your repair fund. If your engine blows up in your car you can use your fund to repair the vehicle or buy a new 4,000 buck car. Yeah I know Dave’s 3-6 months of expenses would cover this but in my opinion having a vehicle fund on top of the 3-6months is just that much better because vehicles are an expense that you absolutely know will come up so why not be prepared?

A conversation with my sister who lives in Portugal 🇵🇹, My homeland. I am obsess Dave Ramsey. My sister answers: I don’t think life is only work work, your girls need you at home... but like the guy said don’t take advice from broke people... I am broke 🤣🤣🤣 All said in Portuguese.

Sell the truck and go get a 6k truck. Be debt free and have a decent truck for a few years

So he’s afraid to payoff the loan because he wants the security of savings? Jesus, he thinks being in debt on the truck equals security?

He should try to sell the truck unless it is absolutely needed. I would say you need t least 1 years worth of expenses..never know about your job vanishing.

Here I am thinking he’s one of those guys with the hot shot business at beginning of this video and it’s just toys and hobbies like most I know with trucks here in Oklahoma. People love being broke and in debt with misplaced priorities.

buy a 2-3k gas sipper... this guy will spend a lot more on that gas sipper than the extra gas in the truck... no idea what hes doing... just arguing...

Wonder what the "hobby truck" is pulling. Bass boat? ATV? lol He has holes in his bucket but some of them are 'life enhancing' holes.

Interest - you either earn it or pay it - I know which one I prefer

You can tell Dave didnt wanna deal with this guy. Dude is gonna do what he wants

Nick isn't gazelle intense. He's starting to be, but his Daveish plan is evident in this call

Commute 40,000 miles holy cow

My dad always said not to marry a man that has to have a hobby

If he has a truck with towing capacity twice what he actually tows, he can get three hundred thousand miles while keeping the truck looking nice and with only tires and oil changes. They're a lot better now than when Dave and I were young.

Forget the expensive hobby!! Hobbies are fun, if you can afford it. But they also waste a lot of money.

Lol when Dave says to callers to downgrade to a 5 to 7k car and ive never owned a car worth more than about 2 thousand bucks, and they've all been safe comfy reliable cheap to operate e cold ac and toasty heat ... the cars people are fussy to get into post Dave would be a greater than 2x splurgy upgrade , they'll be just fine if they buy smart, that's a goal car for me someday

@ 4:04 Ramsey gives it to him straight up.

Expensive daycare. Haha. His tone is amazing. 😂😂😂😂

Get rid of the debt with your savings

Sounded like the guy's hobby was more important to him than paying off debt. People shouldn't have to be told to quit a hobby to get rid of the debt. It's common sense.

Dave “sell the car” Ramsey 😂

I'm gonna write down my goals, annaul income, debts, car lease pmts, 401k savings, and call Mr. Dave Ramsey for advise. one of these days

I HATE DEBT!!!

He is not interested........jog him on

I think Dave just layed out a complete waste a truck actually is for 95% of people that own them. You own a truck to haul things 6 times a yr that's $3000 a haul you could pay someone cheaper or you could rent a truck for was less 6 times a yr. We all want that fancy truck but the truth is most are in massive debt for a truck they don't use nearly enough to warrant the debt.

He called in, briefly listened to Dave's advice, then said he thinks he has a smarter idea lol

This episode was surprisingly good.

Yes , but were the floors repolished & redone ?

So all that for a truck and hobby lol. Talk about wasting Dave’s time. Sell the truck and move on with yourself!!!!

Such denial! That work truck he needs turned into a hobby car real fast!

I'm assuming if I have more in savings than I do in debt, pay off debt first right? Obviously or?

Everytime i paid debt in bulk I think i will save that extra money But i always find away to make my income just enough for my life and nothing gets saved lol

I really like most of Dave’s concepts other than leveraging debt but man he is so arrogant and all of his die hard fans in the comments are super arrogant too..the way they look down on people that don’t completely agree with certain recommendations and treat it like you need to follow it to the letter of the law lol. You act as if it’s a one shoe fits all mentality...most of you praise every word out of his mouth because you’re awful with money and his concepts got you out of your bad situation which I completely understand and am empathetic to that point but don’t bash people that have become successful like me not following it like a cult. It’s a good habit to form yes but not all of us are financially dumb like most of you and can’t leverage some of our debt to become extremely wealthy.

What are you getting on your savings verses what is your interest rate?

If you had the truck paid for and $11,000 in the bank would you take out a loan for $24,000 just so you could have $33,000 in the bank?

People can't be this dense. You have to have "A" truck for work. Not the most expensive hooked up truck possible. It kills me, when people act like they are broke and have all sorts of income yet could pay off debt, start a business and still have money in the bank.

Where’s the guy with the big back and the other guy Chris invests ?

“Have to” is a big excuse

5:27 Dave muted ol' boy lol

With that many miles and needing to pull at trailer should just buy an older semi.

Dave wouldnt approve but...he could pay 1/2 of the truck down..refinance it for a much lower payment...see if emotionally he could handle the large pay down..keep saving money and then pay it off. No reason in these times to add drastic measures to his stress level.

Two advertisements of very expensive cars before I was allowed to see this video... 😁

The only place money has any value is in your pocket. Can't really eat or live in "financial freedom can you? Keep the money there is nothing wrong with debt as long as is being paid.

Sell the Truck.

I have $60,000 in savings and owe $2,800 on a credit card. I am making $100 a month payments and I’m scared to death to pay it off lol.

Dave didn’t factor in the interest on his car loan Acts like he’s got zero percent car loan

The truck is for a hobby??? What?? Get an economy car and Uber!

IF YOU ARE IN DEBT- YOU DON’T HAVE SAVINGS

alright dave i have 6550 left on my car i have 3000 in savings over 3000 in cd should i use that to pay off the debt or wait

Im 21 i owe 29k on my truck and 60k on my house... i make 41k a year. I really love my truck its my only debt... i have about 7k in the banm what should i do?

I can’t get over the size of the new desk makes Dave look tiny