You Can Start Again Without Filing Bankruptcy (Hour 3)
In <music> live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios. It's the dave ramsey ramsey show where debt is dumb. Cash is king paid off home. Mortgage has taken the blaze of the b._m._w. As the status symbol of choice open open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five evan is with us in connecticut. Welcome to the dave ramsey show evan hi. Thanks for taking my call sure what's up. I'm twenty two years old. I just graduated from college. Luckily a death free and i have a a two degrees the degree in broadcast journalism and a degree in political science and now i've been applying for a lot of jobs and all that entry level positions all the offers. I've been getting extremely low tanks and i'm considering going to law school but go to law school. It's probably seems like i'm gonna have to take loans so i was wondering your take on this type of thing. Okay well i. I if you're going to go to law school and i'm in your shoes. I'm going to not go- unless i find a way to do it. Debt free and that's possible. It's a very it's a very tough road <hes> <music> but it sounds more like it's a career thing with you. You've just not landed something in your field to even get started and as you probably are discovering most broadcast entry we level stuff <hes> whether it's <hes> radio or television is he doesn't pay much <hes> it. It's not at all. It's a tough entry position. Now you can work your way up and <hes> you know start doing something that has some popularity and move into some of those roles on camera or behind the scenes either one and and they can pay very well but you know the starting reporter at the local t._v. Station doesn't make jack and so <hes> it's just a tough off tough thing but it does get you in the <hes>. It does get you in the room and get your round the stuff <hes>. I don't think you <hes> woke up five years ago. Oh saying hey. I want to be a lawyer and the way to get a journalism degree. I think you're thinking lawyer because you haven't been able to land something yeah yeah. That's kind of what i'm thinking because i haven't been able to really because now i'm at the point where my parents want me to get something fully dependent and these jobs in a really pay enough for me to be fully dependent so i'm kind of thinking he can you know what can i do to be dependent on my own. I wanna move out on my own. Oh it may require two jobs <hes> for a little while. You may have to pick up something. Something is outside in order to supplement <hes> what you're doing. <hes> i don't even care if it's necessarily in your career field but <hes> yeah i think you take one of those entry level things that doesn't pay well and supplemented for a little while and see if you can get something moving save some ideas or sparks and some things you can do to move your way into that. Let me give you a copy of ken collins book. It is the best book on the subject that i can think of on career. It's finding the work you love. It's called the proximity principle and i think that the proven strategy that will lead to the work you love is what the book called the proximity principle <hes>. I think it's going to help you probably more than i can in a five minute call for sure and feel free to call ken on his show to he can walk you through some great ideas. He's got a great sharp mind on the idea of doing on this show on sirius x._m. And on <hes> about thirty five radio stations now carrying the ken coleman show. We just launched it a couple months ago and it's it's going crazy people. I love this idea of finding work. They love the proximity principle was a number one bestseller so hold on and national pickup. She would love to give you a copy. She's actually kipnes phone screener in her real job and we borrowed her today because kelly was out so that'll work. That's she knows how to give away. Proximity principle don't yeah i thought so very cool omar's weather in california. Hey omar welcome to the dave ramsey. Show hi thank you for answering my call sure what's up up <hes> so me and my wife are currently on baby step two and <hes> we we all <hes> twenty four thousand nine hundred the five dollars and <hes> that's kind of part of our car loan. It's the twenty three thousand three hundred fifty five. That's how much we in the car the car worth it's where the ballot much okay. How old how old are you gosh. I'm twenty four and she's twenty three okay. And what is your household income. You and your wife sent <hes> right now she currently she just i quit her job and <hes>. I bring fifty thousand dollars a year. Why did she quit her job. <hes> it was too much for a stressing house the shula tech support and <hes> it was just getting <hes>. We decided how mentally live with her clarence. That's that's sure as hell yeah and i wanna know if if it's <hes> if it's the right move to move out and and <hes> what we found that cheap was eight hundred and fifty dollars for a one bedroom apartment yeah you need to sell your car yeah your car's ridiculous diculeng in the situation's crazy land and your wife needs to get a job tomorrow and she needs to keep a job because being broke his financially stress of all to yea. You don't walk out on a job when you have debt coming out your ears so much so that you're living with your in laws you sucking up now. I don't want her to have to live in a toxic environment for twenty five years but you for a few months you guys make better decisions in this tough it up a little bit. She gets a job immediately. You show your car immediately. He then yeah you move out okay. Yeah we just barely downloaded a everydollar app to and i was talking to her about this book that you have. That's <hes> total money makeover in work. That's our next plan. Read it together. Oh that's great okay. Have you got a copy now not yet i'll send engine copy as you're moving out gift so hold on madison. Pick up and i'll send you a total money makeover. That'll be you're moving out gift but dude you gotta take you guys start taking some action here. We're grown married people time to be doing some other stuff open phones at triple eight eight. Two five five two who to five terry is in arizona hi terry welcome to the dave ramsey show hi dave. Thanks for taking my call. How are you today. That was an deserve. What's up well. I've got a daughter that was going to community college and feels that it's not for her so she wants to go to ask petition school. I'm adamantly opposed against loans because we just paid my wife's off and fortunately we're debt free so i told my daughter she pays for half pay for the other half and that if she's failing clean school if she doesn't pass then she needs to pay us that does that sound like a good idea or not <hes> as long as you weren't borrowing the money to pay for her the half oh no. She's already said up almost eighty percent of her okay good. She works. She works fulltime and i wanna wanna get her through f._p._u. And i want us to go thrift to you as well because we just became debt free this week except for our house congratulate my wife i want my wife and i to go at our house like against ellen paid off in the next four years we don't we don't do you steps four or five and six at gazelle level but we are very intentional. Gazelle level is you. Don't have any life at all so you get through baby steps one through three but while you're paying off your house baby step two four five six. We lighten up a little bit. We're just very intentional and if you can cash flow half of your or daughter school and she can pay for half of it. I think that's a wonderful idea. That's a great thing to do and it's what she wants to do. That's fun at least when she gets through even if she doesn't decide to go that route she's not in debt to it and <hes> but i would not pay for half. She's going into debt for the other half. I don't do that. That's basically endorsing the stupidity with my wallet and i don't wanna do that. That's not a plan. I'll pay for half and go borrow the money near in you. This is dave ramsey. Show arisen study showed that over fifty percent of people think that the cost of term life insurance is triple what it actually costs. This must be why so many people still don't take care of this crucial responsibility. Trust me term. Life rates are just plain cheap and it costs nothing to get a quote. The only place i trust and personal uses zander insurance call eight hundred three five six forty two eighty two or or visit zander dot com. It's more affordable than you think and you need to get this done. That's zander dot com <music> ashes with us in illinois is welcome to the dave ramsey show uh-huh i just found out from my roommate that i am getting my wages garnished and i was wondering is there or any way to stop a garnishment without bankruptcy because i don't want to go down that route. How did your roommate no your wages being garnished hi. He called me and told me i had a letter in the mail because i'm an over the road truck driver and it's wage garnishment on it. I had them open it and read it to me immediately. Does it threaten it or it says it's occurring on a certain date <hes> it's that the order was granted on july nineteenth and it's about to start okay <hes> and it <hes> all right. Here's the thing a lot of collectors will threaten wage-garnishment in a way that sounds like it is definitely occurring <hes> <hes> and they're lying. They haven't done anything yet so i'm a little bit wondering if that's happening or if they have actually sued you one and are now executing on the judgement went with an actual wage-garnishment they could. What kind of debt is this <hes> well i. I'm actually looking at the court order right now. I just downloaded it on my tablet okay and it's from a training program that i that i attended back in two thousand two okay. And how much do you owe them. <hes> a actual judgment amount is eleven thousand but they they are collecting twenty two thousand okay. They can't collect more than the judgment amount. There's something wrong with that but i mean the judgment if the judge gave them the ability to collect twenty two thousand. That's the judgment but so anyway how was the original dad eleven thousand <hes> the original cost of the training i believe was about five thousand thousands which i was paying on but due to my own stupid decisions during the time the crisis for me. I ended up in prison for a couple of years. Oh my goodness and i just got. How long have you done it. How i got out in two thousand fifteen okay but i started going back down the the same route that i was on before i went to prison and then just which i'm not gonna lie. It involved a lot of drugs and alcohol mhm. I woke up one day and i said i'm tired of this wife and i got my c._d._l. Started cardi grinding and i've been clean and sober for a little over a year now <hes> good for you congratulations. Well done okay so we're. We're turning things around. This is in the past but we still gotta clean it up. In part of being <hes> becoming sober is dealing with the damage from the past agreed very much. Okay so proud of you man congratulations for turn your life around. So what do you make now <hes> it varies like last week. I'm only brought home four hundred dollars because i didn't get very many miles the week before but it all depends on how many miles i get every week. Could are you usually get on average about okay eight hundred a week. Okay i see making by forty five fifty thousand a year right <hes>. I'm on pace to make about forty five this year. Yeah okay good okay. <hes> and you've been dry for a year. Do you have any other debts that you're paying on <hes>. Actually i've been pulling everything off the credit karma getting in touch with all the creditors and trying to get them to let means make small payments and stuff like that many things. Are you making payments on now oh right now. I've got one two three four that i'm making payments to right now not including the garnishment gotcha because here here's what's running through my mind mathematically if we could if you could figure out a way to just live on nothing and scrape money together scrape money together scrape money together gather and you were to offer these people five thousand dollars as a settlement on this debt cash on the barrel head. They'll probably take it okay and 'cause they probably think they're not gonna get all their money after this after this amount of time and <hes> so <hes> with being training from a school that you did attend <hes> this probably is a wage garnham garnishment it is the type of thing that would would sue and would go all the way to garnishment so there's probably a valid document a you probably are getting garnished the only way to stop that is to pay them some amount amount that they agree to in cash so it might be that you get garnish for one month right and during that month during that month. You just work like a thousand hours do anything you can do whatever you can do sell everything. Don't pay anybody else for that month on all the other bad debts and scraped together like five grand and offer from five grand. I don't know if you could pull that off in one month or not. We take two months but something like that is probably would settle it with them and make them go away. <hes> they're not going to just allow you to start making payments. They're going to take it out of your check. They gotcha now. I got your where they want you now. You're not in a strong position anymore. So um bankruptcy does not solve it <hes> unless you filed a chapter seven bankruptcy which dismisses all unsecured unsecured debt and starts fresh. That's the clean slate bankruptcy. How much are the data. Have you got total total <music>. I've got it figured out to be about twenty. Eight thousand including this are on top of this including. Oh wow so you don't have much other than this whole thing about it then yeah i mean it's twelve hundred here thousand here yeah. It's not not much whatsoever with these guys. You can beat those other guys off pretty. Quick mosquitoes yeah because i mean before i i went for my time of crisis and ended up in prison. I used to listen to you every day and i started working. The baby steps. I was on baby. He's set to and then i had like i said i had a personal crisis which ended up with me in prison and how old are you. I am forty years old good well. I'm proud of you getting sober staying sober for a year well done proud of you being responsible and addressing these issues. That's the kind of thing you need to do which helps your sobriety. It also helps your career. Helps your future. Everything you're doing is smart and wise is. It's a better path that you're on very well done sir. I want you to go through financial peace university. It's all online now which worked well for a truck driver. I want you to go through or is my guest. I'm gonna give it to you and be part of your newfound sobriety. Okay okay you hold on madison pickup and we're gonna get your signed up for for financial peace university well done sir. Well done open phones at triple eight eight to five five to five you jump in. We'll talk about your life and your money brave young men. They're brave to fight through that <hes> been through some obvious stuff. I've i've done a lot of stupid stuff in my life. Have you have you mm sea. Financial problems are almost never the problem. Labor cat used to say there the symptom and when i had financial problems comes over the symptom of my stupidity what about you ashes got. He went through your stupid period and now he's got the four crop crop of stupid coming in and clean it up. The good news is you don't have to do it again. You can make choices for the rest of your life that don't leave you in that situation commission me to this is the dave ramsey. Show <music> <music> <music> patty patty's kansas city. How are you patty hi. I'm better than i deserve. I think you're that we deserve ah sweet. How can i help well. <hes> my dad passed away about a month ago and i basically doubles of my net worth <hes> from having inherited for him. <hes> about half of what i have is an i._r._a. And the other half is inherited from him and my income is basically i have a pension and my social security and <hes> i am single. I'm retired. I'm in my sixties <hes> and single and have no kids and i would. I'm asking about giving <hes> ideas for places to give money to and also and and then extending that into my estate planning good for you okay and so how much is your net worth now about a million about a ask from him in about a half a million that you would saved. Yes well done good shop patty. I was very lucky in my life and having a good parents who helped pay for my school and <hes> and and managed to get good job that paid well too so okay well a million dollars investing. Well should be creating anywhere from fifty to eighty. Maybe even one hundred thousand dollars a year income for you in addition to your pension and your social security so you've obviously got that in your monthly income to <hes> if you pull it off or if you lay there either one you've got that to do giving from a not aww even touch the nest egg so to speak <hes> if you want to direct some of the nest egg beyond that you just got to be careful that you have enough to live on. That's the whole thing is the nasdaq. Has i remain of size that you can live off the income it creates with your social security and with your pension which sounds like a pretty conservative and you'll be able to do that in terms of in terms picking in terms of picking places to give to there are many more wonderful things than you'll be able to help. There's so many people out there doing such wonderful work and i and such scale that there's no way possible that you'll be able to get to anywhere close to all of them and so i'll tell you what we do with the ramsey family foundation <hes> my daughter denise runs the ramsey family foundation and that's where we do all our giving through other than our ties to our local church and what we do is we have allocated the larger percentage of that goes to christian ministries of some kind of the giving that we do each year because we're christians and then a portion of it goes to <hes> uh-huh education institutions whether they're christian or not and and what we call mainstream <hes> and so then we just kind of have a giving living budget each year that we look at the way we select who were going to give to <hes> is really dictated by a couple of things one one is we don't give to organizations that aren't being operated well because we want to make sure that god's money that we're investing it for his kingdom and it's being operated well and so we look at the leadership team in the budget and we make sure that you know that they're actually you know. They got their act together. They're financially <hes> they don't have to be multimillion dollar thing they've just got to be clean and doing a good job and <hes> good operating principles and of course from ramsey perspective respective that would include they don't borrow money. We don't give two ministries or anybody else at bars money because we don't want give money to something that supports a bank when we don't believe in that so <hes> that's consistent with our values right and so you've gotta decide that kind of thing so we're looking at the operations and the value systems of the of the ministry the second way the way that we even get around to looking at that is the first filter is someone in our family. Our family all is on the <hes> the board good for this <hes> for this foundation and someone nominates a out of our team a ministry or something that they've heard about our looked at and then <hes> then we go in and we vet them now. What that means is from your discussion standpoint is. It's something that someone has a a heart. For what is it you care about. What is it that you really really touches your heart because there are things that are really sad and are really need help but they still don't touch my heart and there are things that there are things that that do touch my heart there for some reason or another that and and we just use that as our gauge someone in the family in your case you <hes> <hes> you know. It's something that you see or you. You've got a friend but i don't give anything to people just because they ask <hes> it has to be a connection of some kind to our to our spirit and when we go wow that really man and sometimes we do it only for one year <hes> sometimes we do it year after year but there's ministries that we've supported for for fifteen years <hes> that we just believe in the work. They're doing other ministries that we've <hes> that we've supported you know an inner city connecticut care for people who can't afford any kind of medical care clinic you know that kind of thing and went down went down and visited it and just saw the people they were being helped and it just just broke our hearts. Hey we want to be a big player in that. We want to help you and so you know that was one. We did a few years ago and so you're just looking for something that i kind of rings your bell. It just makes you tear up a little bit. You think man. I got a lump in my throat. I gotta help that that situation. I got you you know you know you read an article about sex trafficking and you realize how bad that situation is in america today and around the world for sure <hes> and and you go wow i want to get involved in that and you so you do you know or whatever it is but then then then you fat and actually do some due diligence as if you were doing an investment estimate on the ministry before we give now. That's giving a substantial gift. I mean if we're given five hundred bucks or something you know we don't we don't mess around and spend spend five hundred dollars worth of time trying to five hundred dollars away. That's miss do that. We're not that tough about it but but if we're going to give something from zeros on it we really feel like we need to check into into it and do a good job with it and that they're doing a good job with the money in the handling of the money and so that's a great question. What a great heart. You got patty. That's awesome awesome. Courtney is with us and according to next season north carolina hi courtney welcome to the dave ramsey show. Hi thank you for taking my call sure what's up so i have a quick question. I am currently in baby step two but my company requires that i contribute four percent to my retirement fund and we have the option of doing a four zero three b like traditional for three or ross and i've been told different things about what i should choose since i'm younger people have said i should start out with it. <hes> i work for a hostile they require. Yeah sure may not yeah no. I know they match but they require it. It's mandatory. Yeah sure yes very unusual for hospital to do that like highly unusual. I want you to double check that okay okay okay. I'm not sure i think someone might be strongly. Suggesting how bright is to go be getting that match and i wouldn't disagree with that part of the discussion but for a hospital to require a four percent contribution is highly unusual. This is not a hospital corporation. This is a a ministry of some kind of or or a a religious based hospitals kind. No no i'm shocked okay. I want you to double. Check that okay but either way the answer to your question. Shen is when you get there or if you're there now because they do require it and i'm wrong. <hes> then what you'll do. Is you want to do the roth for sure because the roth grows tax free the vast majority of what will be in your account when you get to retirement. We'll be growth. I mean if there's two million dollars in there a million dollars in there almost all of growth. It won't be what you've put in and you're either gonna pay taxes on that million dollars or not. I prefer not not and not is roth. Roth is not paying taxes. It is tax free growth that option. Thanks for the call. This is the dave ramsey ramsey show uh <music> our scripture of the day every every good and perfect gift is from above coming down from the father of the heavenly lights who does not change like shifting shadows james one seventeen seventeen dwayne johnson said success isn't always about greatness. It's about consistency consistent. Hard work leads to success. Greatness will come well guys. If you know anything about our show we tell the truth about credit cards points. Airline miles and rewards are gimmicks credit card companies buddies us to keep you in debt and americans are falling for it. Consumers have eight hundred and fifty billion dollars of credit card debt. This is is nuts so you've got to change how you behave with money and we can teach you how for twenty five years financial peace university is taught almost just six million people out not only get out of that not only save never touch a credit card again but bill wealth then change your family tree. It's possible to live with our credit cards. Go to daveramsey dot com. We'll show you how checkout financial peace university or call the ramsey concierge team at triple eight twenty two peace triple eight two two seven three two two three love it well if you're in sales listen up. We were hiring sales professionals for three of our teams right now. Our media team ramsey education at the high school curriculum team. I n r entree leadership team working with small businesses. If you're interested in working here <hes> were only looking for the people who are who care very deeply and who worked their butts off. We don't fool around around here. We got stuff to do and we don't have enough people to do it so so click dave's hiring tab. If you wanna see the positions were hiring for marketing in sales is one of them right now for entree leadership ramsey media in ramsey education. Click dave's hiring on the right inside of the webpage and it'll make it happen open phones at triple eight eight. Five five two two to five deo is with us in maryland hi dale. How are you could ask mr ramsey. How're you doing today than i deserve. What's up <hes> my husband and i took <hes> financial peace university in november of two thousand seventeen through our church <hes> prior to that we had a a lot of financial issues in our family and we were separate with <hes> the way we managed finances <hes> after the class during the class we encouraged to <hes> get rid of our credit cards and he was completely on board. We cut up the credit cards. We paid everything off. <hes> so far we we started out with debt of two hundred thirty thousand <hes> dollars of non <hes> mortgage debt and we were. We've been able to pay down to one hundred and ten thousand dollars way to go. Wow thank you but <hes> we've had also other family problems. Just <hes> just marital issues that we're dealing with and wearing counseling house one four during one of our <hes> situation he expressed to me voluntarily that he opened a one of the credit cards parts which we had in my mind was already gone <hes> and bad he used a portion of the the the credit card to consult from the consultation from the lawyers <hes> and that didn't make sense to me because <hes> the amount of money that he told me he spent ain't for consultation and retention retention fee for a lawyer was twenty three hundred and the situation that he was referring into that made him go to a lawyer didn't seem like it was something that he should have done not so i went doing my own investigation and found that he you had actually been using the credit card for more than a year now for other purchases just personal things that he was <hes> that he needed i ki- the <hes> barnes and noble and things of that nature and just spent three hundred dollars for legal consultation <hes> which didn't make sense to me yeah but that's exactly what i found out when i confronted him with the information he initially did not want one off to it wasn't outright an an upfront about the situation but <hes> my question is how do i. We've been able to pass that. We've gone to counseling and we're working through the marital issues and he's promised me that he was going to try to pay off credit cards on his own. I don't have to worry about it. It's not part of art art. <hes> snowball and it's not my issue but i feel betrayed because we had taken this class and we had how long ago this occur this happened. We didn't know about it about a week a week ago right now. Yeah then i found out about the credit card guess you found out about the credit card one week ago. Listen we maybe about five days ago and you already met with your counselor about this and already moved on what you said well regarding the marital issues not discussed the fact that he lied to you about a credit car with marriage counselor. No we haven't gotten there yet yeah. You need to let me tell you what's happening here. Okay your own unstable stable ground. You're walking across the pond on frozen ice and it's cracking all around. You and you feel really scared because you don't know what to trust because trust has been broken in several different areas of this relationship. Am i right correct yeah and this is yet one more and so what we've found in our financial coaching and working with marriage counselors is that when someone someone lies about something after we have a solid marital contract meaning you all had had a handshake agreement that you'd gone to the class you weren't using credit the car. Jim warren he's straight up lied and deceived and hid this from you that it activates the same part of your emotions that an affair does and so people in our world have started calling it financial infidelity because it makes you feel kind of the same way right. That's exactly yeah. I feel somehow get into feeling that he thinks it's all about the money no. It's not it's all it's all about lying and and it's all about trust. The money is not an issue. You start with two hundred thirty thousand. You're down one hundred ten thousand twenty. Three hundred hundred dollars is not a problem right that is absolute. It is not about the money. This is not a math problem. This is a you lied to me. He hid from me stole from our family and think it's okay and it's not freaking okay and that's what you're feeling betrayed. It's a trust has been broken and so this is something you guys. Israeli need to unpack with your counselor and i'm glad you've got one. You need one and continue to work this through <hes> because he needs to grasp the idea that lying to who is wife is probably not gonna work out well about anything so i guess my question to now is do i do. We perceive do we continue with the show. Yes assuming we can get back on the page of trust but dude. You know you really of what he's really. He's really asking to end his marriage if he keeps his crap up. 'cause you probably only got one or two more of these things in you and you're going to be done. You're you know cause any normal sane. Human being is not going to put up with somebody. Who's looking you in the face in line all the time. So this guy y'all misbehaved you got all these other issues all these things with financial problems and everything else you've worked it through on a path toward healing and he decides adds to sidebar here with this and you start to wonder what else have you lied to me about and that's just normal human nature. I don't know if he's allowed to you about something else or not. But i mean this dude. I'm wondering if he's willing to lie to you about barnes and noble my god. That's a fairly low bar. What's what's he willing to lie about. You know what if it was something big. That actually mattered. You know so yeah yeah. I think this goes to the counselor and i think you guys get through in no. You're not being crazy to have the feelings that you have <hes> hopefully y'all can work them through. I hope you can hope he stops his misbehavior and hope there's not other misbehavior tied after this credit card but that's that's what you're looking for is. You're trying to rebuild trust. You're exactly right. This is a trust problem. Thanks for the call that puts this hour of the dave ramsey show in the books. We'll be back with you before you know it. In the meantime remember there's ultimately only one way to financial peace and that's just to walk daily with the prince of peace christ jesus. This is james childs producer of the dave ramsey the show once again you made the dave ramsey show one of the top five most downloaded podcast last year to get your daily dose of motivation and inspiration subscribed today. Money isn't the only thing we talk about around here. Get life-changing advice on your career from my good friend and career expert ken coleman all my ken coleman show according to a recent gallup poll nearly seventy percent of americans are disengaged at work if you dread going into work every monday morning and you're just trying to make it to the weekend. The ken coleman show is for you. Everyone has a sweet sweet spot. Your sweet spot is at the intersection of your greatest talent in greatest passion. We will help you discover what it is. You were born to do and then we'll help be creative plan to make your dream job a reality. You matter and you have what it takes. Join the conversation on the ken coleman show hear more from the ramsey ramsey network including the ken coleman show where ever you listen to podcasts. Hey it's james producer of the dave ramsey show. This episode is over but check the episode but not for links to products and services. You've heard about during this episode. Thanks for listening.