I am so glad they brought Jade on. She is now probably my favorite personality and that happened very quickly. Incredibly bright, wise, witty, and quick. Excellent job Ramsey show!
Really, do i always have to read a comment praising Jade 😒🤦🏾♂️ She’s doing well in the show, but come on yes she is a female ladies & u are too congrats.
A buttah face 😂 love Jade. Love the no-nonsense advice here. I'm so glad I found you all. You've literally changed the trajectory of my financial life.
I see this a lot where people try to make themselves feel better by paying a little more across all their debts…when in reality it’s probably the worst mathematical and behavioral thing to do. They’re getting no benefit from either the avalanche or snow ball method and just end up spinning their wheels for longer. This family need to pick the debt that bugs them the most and just hammer it until it’s gone.
Why is it _mathematically_ worse? I would even question why it's _behaviorally_ worse since this family has a high income and only 2 debts (HELOC and boat) other than their primary mortgage. They're not demotivated because its' taking too long to see progress with paying off their debts (the advantage of snowball), they're complaining that they don't want to impact their lifestyle, which means they're just not ready to follow the baby steps.
The shotgun method works just as well as the other methods, as long as you stick to paying the same extra amount on all debts at all times. It’s not as well known but a lot of high income people will pay an extra $2k towards debt spread throughout 4 debts at the same time.
I haven't paid a penny of interest (own house outright) in over 20 years, and I have a credit score over 800. I do put a lot on my Visa every month and use the cash back for our travel budget, but I pay it off every month.
The point about the credit score isn't whether you have one or not. The point is that you shouldn't care what it is if you don't intend to go into debt. Only people looking for loans care about their credit score.
Credit score can also represent that you carry no balances. We use credit cards with point and use it to purchase daily expenses that credit card is tied to our debit card and we send the amount immediately after every purchase. We have made money off our cards because we use it for paying bills which gets paid before 30 days. It good to have high credit score just in case need it and some financial jobs look at your score before hiring you.
That’s true but that’s why you need to have savings/ an emergency fund. Our monthly budget is more than $11K and we don’t complain over our $520 car payment. We live in CA too. Where everything is expensive.
I love you Dave and Jaden but a high credit score doesn’t prove you have borrowed a lot AND paid a lot of interest. We have an 835 and haven’t had ANY debt in years. We use a credit card and pay it off EVERY WEEK which creates about $1000 a year in cash from points. House paid off, no car payment. No store credit etc. ZERO DEBT.
I remember hearing the old saying,” a boat is a black hole in the water where your money goes in and you never see it again.” in otherwords; sell the boat, and save the money that you were paying for that boat.
Dave is wrong about the Credit Score. Mine is 840+ I never pay interest or carry debt, heck I almost never use CC's anyway. Only use them for convenience (hotels, flights, car rentals and places I don't want people touching my bank account). I only have a mortgage, which I got a fantastic rate and instant approval. Dave hates CC's so much it blinds him. You don't have to play "kissy face" with the bank to maintain a high score if you're smart. Having a high credit score just makes your life much easier. Unless you have hundreds of Millions like Dave, just be smart and don't carry debt and use CC's wisely. Once you get to "FU Level Money" then you can ditch having to deal with credit.
I'm sorry to hear you have a credit score. If you're smart you don't maintain a credit score. A credit score only means you live in a backwards country like the USA. Most of the rest of the Western World finds the concept of credit scores comical.
I don't "maintain" a credit score. You're give one anyway even if you don't want it. I just happen to have a high one. I don't use debt and I don't pay interest. I give no thought to my credit score. @@amireallythatgrumpy6508
I don't agree with Dave that it takes a ton of "making love to the bank" to get an 800 plus credit score. I pay all my expenses with my credit card and pay it off every single month and paid my mortgage on time. The only loans I ever had were my home loan and a car loan that we paid off in 3 months and my credit score is 816 right now with basically zero effort. The only significant interest I've ever paid was on my home loan just like anybody else would. I've never paid a penny of interest on my credit card or personal loan. Anyway, my wife and I just paid off our house this year. I'm 24 and she is 22, so we're serious about living debt free and I honestly don't even care about my credit score. My point is that Dave's idea is incorrect. It's not hard to have a good credit score and it doesn't take a ton of effort.
You only need a credit score if you want to borrow money. At some point in your life you need to stop borrowing money. I am 67 with no debt but I only paid it off this year. So going forward into retirement my expenses are very low and we will have a very good retirement.
We both have 800+ credit scores and are BS7… so idk that I agree it means you’ve paid a lot of interest bc we have never had debt and paid cash to build our house.
It amazes me how people continue to reach out to Dave having this type of narrative...of course you'll have to start sacrificing your lifestyle for future financial freedom!
The vast majority of Americans are paying interest on credit card balances. You are one of the ones who is not, and while I am not either I do believe that I spend more on my credit card then I would if I use my debit card.
@@abrareads I don't see how. Swiping a credit card feels no different than swiping a debit card. And if you honestly can't control your spending on a CC then only charge recurring monthly expenses and gas on CC. Nobody buys extra gas, electricity, or cable simply because they are swiping a CC..
I agree with most advise given to reduce / elimate debt but every time they make assumptions about a $275K salary and live off $100K and pay $175K towards debt makes zero sense. People do not take home their entire salary. Remove taxes, 401K, insurance premiums, HSA, etc. They are likely clearing $175K. It would be good to use realistic numbers and timelines to give people clear picture. That being sad, people making $275K per year can find there way out of this situation most easier than the guests who are in similar situation with less than $100K income.
No Dave, there are some of us out there w an 800+ credit score that never make out w the bank! NEVER. I own property in 3 states. My last bank deal was for an apt building 10 years ago. Outside of that NO BANK LOANS IN OVER 30 YEARS
Dave actually is a wise person. I had an impression he don't like real estate, only encourage people to save 401K and spend less. But he isn't. It's the people called him are most irresponsible to their personal finance. And he put peaceful mind into the equation in investment formula.
I make 2 billion dollars (yes with a B)...... an hour I own two cruise...... companies I have three houses...... on Mars But I'm struggling with my lifestyle... the expenses to travel to the Sun is quite outrageous and house maintenance on Mars is not cheap Oh, btw my credit score is 800...... million plus
Dave you talk about your wife, i know you love her by the way you joke about her. you need to bring her on and let her tell about her side of your struggles.
🤣 Dave, I know Jade is giving you life! Dave's response to "buttah face" had me cracking up. She's definitely a breath of fresh air. Love your show and the rest of your team! You all are truly doing God's work.
It amazes me that they make $275K a year and cant give up traveling and home upgrades to pay off debt. Are we serious. There's just no way with that much income that they should be in debt. These kinda calls are insane to me.
Really need to specify the Gross vs Net pay. 275k is likely under $200k take home. They just need to Sell the boat and figure out where the rest of their money goes and they’ll be fine
That 275k is probably before taxes so they're take home is probably around 130-140k so it will take them a few years of disciplined spending and sacrifice to become debt free and when a person is talking about the impact on their lifestyle they're not ready to sacrifice anything
ARMs and adjustable HELOCs are rarely a good plan. Follow Dave's plan to get rid of all debt ASAP. They have enough income but not enough common sense. Boats and cars should only be purchased with cash. Sell the boat and become debt-free if you want a better future.
@@LfrJaccnot “likely” true. Using a credit card can offer more protection than a debit card and, for those who pay off their balance each month, a free float period from purchase to payment in full, where your money stays longer in your debit account.
I was making $21,000 a year single parent of 3…….I now make $43,400 I filed bankruptcy chapter 7 in the past…..I been in debt from student loans, payday loans, borrowing money to buy food for myself and kids, etc literally just trying to make it…..I listen to some people and their annual income and I’m like I wish…… I stay in Alexandria, Louisiana and we grew up poor ramen noodles was our main meal most nights……I’m 37 and I’m sick and tired of being sick and tired but honestly what do I do…..I’m listening but I haven’t heard one person who I could relate to smh……My debt total $45000…….I’m a hard worker but we all know good work ethics don’t mean nothing it goes unnoticed……I’m trying to learn how to save with very little and not live paycheck to paycheck
Consider calling into the show and see what the advice is. I'd be interested to hear the advice. I am trying to work the debt snowball now. I've done almost all the same things (payday loans were awful). I find I stray off budget too much, going to try every dollar. I know it's hard with kids- daycare, snacks, activities in and out of school, many with little notice. Best of luck to you from someone else in Louisiana.
Yes but 270k post tax is more like 165k. Why isn’t this ever a talking point? Should I tell Uncle Sam I’m on the Ramsey plan so I don’t have to pay taxes
So many high income earners that are still slaves to debt. Lifestyle creep certainly affects most people pretty badly. This letter writer probably didn't mention the $90K+ they probably also have in car loans. even "gurus" that tout the benefits of borrowing and leveraging would tell them they are doing wrong: leveraged equity should only go to investments not depreciating assets.
Unless it’s a financial emergency, the WORST thing a homeowner can do is voluntarily surrender equity in their home. A HELOC is little different from a reverse mortgage that way - for every dime pulled, the anchor of homeownership is hurt. To hear the caller, on top of it all, is actually financing a boat and resents any lifestyle change will only hurt her long term. Especially if any serious life events should occur (sudden job loss, illness, divorce). The naiveté here is shocking.
How can he have a credit score of 800+ if he is so much in debt. A big part of the credit score IS how much debt you're in. If his debt ratio is more than 30%, which I'm sure it is, that takes a big hit on the score. Something smells.
Please Ramsey crew, check yourselves. You were mocking this person while Jade was reading the email. I appreciate the spirit of what you are doing, but there is zero reason to mock people asking for help. Proverbs 22:10 - “Drive out the mocker, and out goes strife; quarrels and insults are ended.”
Dave is totally wrong. I have an 800+ credit score and I am debt free. I use my CC occasionally for major purchases or travel and pay it off immediately. I almost always have a zero balance. I have been debt free for years.
If they lived on way less than $100,000 or even $20,000-30,000 they would have the boat and house paid off in about 3 or 4 years with extra money left over. I wish I was making $275,000 a year. I'm 26 and have been struggling to make $30,000 a year. They definitely need to quit whining. Call the freaking whambulance.
@reese85 Are you saying it's impossible to live on 2 or 3 thousand dollars a month? Maybe even 4? A quarter of $275,000 is almost $70,000 a year. Just because they make more doesn't mean they have to spend more. Depends on how big their family is but it sounds like they have their kids out of the house. You have to separate your living expenses from your overall debt so that you know how much money you have to work with each month to pay off that debt. However, if you rent you have to throw that into your living expenses. If you can't throw half of your income or more at your debt, then you're doing something wrong.
@@garvincrosby4349 my household income is around the same amount and my mortgage alone is 2-3k, so how do you expect ppl making an income like that to downsize and only spend 2-3k a month, it’s impossible
@@garvincrosby4349 they pay more than 2-3k a month on their heloc and boat loan and that doesn’t even include their mortgage and other monthly expenses. It’s impossible to live in that little income
I laugh out loud when Dave Ramsey gets a caller who he tells to sell their expensive car (so they are in a lot less debt) - and tells them to go borrow money from the bank to buy a cheaper car... and is concerned about how their credit is. Yeah Dave. Exactly. There are times when your score very much matters 😂
LOL you Americans have no idea. Credit scores are one of the reasons the rest of the world laughs at you. One of the most absurd concepts known to man. @@IImitateVince
She should go to our Southern border and tell the folks trying to cross over into the US her story. I'm sure she'll get lots of sympathy from the people there (some may even turn around and go back home).
