Youtube, Carmax, Kelley discussed on The Dave Ramsey Show
I have quite a few financial questions. But i'm going to stick with the one that i'm in right now. i'm one it's a 401k. Question and i have seen and watched a couple of videos with people who have about the same questions with using your 401k to pay off debt and i know that it is not a good idea. I'm completely aware of it. i don't have a lot in my 401k. So in in my opinion. I don't feel like taking that heart of and i know it will be because i think it takes thirty percent now. I'm in the lower tax bracket Basically what i'm wanting to use it for is to purchase a vehicle that i don't know any money on I currently have a truck clone. That i'm wanting to get rid of. I'm gonna come up from his truckloads so my plan is to sell it and then use what out of my 401k. Kind of what's left over. After i purchased a vehicle to kind of pay off like other little bit of that. That i have. I have a total of twenty five thousand. Five hundred in debt in the majority of that is from my truck. How much of those on is nineteen thousand three hundred and how much is in your 401k. I have thirteen thousand That's between i have so essentially what you're saying. Is this okay in order to execute my plan. I wanna borrow thirteen thousand dollars at thirty percent interest. That's what you're saying. You're not saying it directly. But that is the effect of your proposal when the smoke clears. And that's why you've heard this call so many times as you've watched youtube the same subject and Here's what's happening. And i commend you for trying to figure out a way out of this. Because you've recognized the truck is the problem and it's gotta go and i really think you're very wise in that regard But but what ends up happening is I know you because i am you. I see you in the mirror. When i look in and we're people that were rip the band aid off people even if it hurts. I wanna be done with it. And we have a tendency in making our financial decisions to let that color our decision And we don't really. I have i just i did this stuff in my twenties and i know exactly how i know the feeling that you're like just won't get this over with that. The is that correct. Yes yes. 'cause i see i see as hurting me more than i am because all of my money is going to be balloons and i'm actually able to pay it. I would rather have it going like saving. I would rather that hundred dollars auto since you've since you bought the truck you've had a wakeup call and and you've that's in the rear view mirror no pun intended. And you know you're looking back there and you're going had come it and i've got to clean this up now and in but we've but truthfully i want you to find a more painful slower are a slower way to clean this up. That is painful on the short term and less painful on the long-term here's a principal for everybody out there when it comes to money if it feels good this week but bad over the period of a decade. Then it's the wrong decision and that's what this one is falls in that bucket because it feels good to cash this out and clean up all these bills and do all this other stuff. So what do you make a year. it's actually basing it also my husband's income because i just recently within six months has started a cleaning business so i make From the numbers that i pulled up within last month as made about eight hundred dollars a month. So i don't make much maybe seven hundred. Eighty seven seven thousand eight or does he make about twenty four thousand a year. He brings in about a four hundred eighty paycheck every week. Johnson truck is killing you. Then how much Kelley blue book it at twenty. Well no oh what the lady told me. I just remember her telling me. Don't ever go less than fifteen thousand I recently did a quote with carmax. And they told me that it gives me seventeen for it so i mean i would only go to grand on it and i know if you saw it private sale. It'll bring enough to pay it off. Yes that's that's where. I'm going with this kelly because there is a quicker path to where you want to get and it doesn't involve sacrificing. She don't have a car then but if you even if you got something in cash. Small like a thousand two thousand dollars. Do you have any savings kelly. I've got a little bit Not much that's a little bit crazy a little bit two thousand two thousand dollars today. I want you to sell the truck for nineteen in by two thousand dollar car. Okay and then..