Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Dave Says Mom and Dad Want a Plan
Townhall.com ^ | December 4, 2012 | Dave Ramsey

Posted on 12/04/2012 12:47:00 PM PST by Kaslin

Dear Dave,

I make about $70,000 a year, and I have $9,000 in student loan debt. I also have a car that would bring enough to allow me to pay off the student loans. Do you think I should sell?

Dave

Dear Dave,

Nice name! Seriously, there are two questions I ask when it comes to selling a car to pay off debt. One, is the value of your car and other vehicles—including motorcycles, boats and such— more than half of your yearly income? If so, then you have way too much money wrapped up in things that are going down in value. So, unless you’re talking about a super-expensive car, I’d say the answer on this one is no.

The second question is this: Can you become debt-free, except for your home, in 18–24 months without selling the car? If the answer is yes, then I wouldn’t sell the car. There’s no reason to sell your car in this scenario, unless you just really hate the thing or need different transportation.

In this case, it sounds like your car is a reasonable percentage of your income. I’d hold on to it and just save like crazy to kill off this student loan debt. With your income, it shouldn’t take more than a year. Good luck, Dave!

—Dave

 Dear Dave,

I have $1,000 in credit card debt, a $12,000 car loan and I owe my parents $20,000. The loan from my parents is causing stress because all I can afford to give them is $200 a month. They don’t need the money, but they’d like to see it paid off soon. What can I do?

Jacob

Dear Jacob,

If you’re not already living on a written, monthly budget, that should be the first step. You say your parents don’t need the money, right? So, they’re not living on bread and water without your payments. I think the biggest thing causing them stress is the fear that you’re being irresponsible and living without a plan.

Make out a simple, realistic budget, and sit down with them to explain what you’re doing and how you plan to address things. Start a debt snowball, and begin knocking out your debts smallest to largest. By the time you pay off the credit cards and the car, you’ll be able to give them lots more than $200 a month.

Just ask mom and dad to stick with you a while longer. I think it will make them feel better to see that you’re serious about getting your finances in order!

—Dave


TOPICS: Business/Economy
KEYWORDS:

1 posted on 12/04/2012 12:47:01 PM PST by Kaslin
[ Post Reply | Private Reply | View Replies]

To: Kaslin

Can someone wiser than me give me a simple answer why Dave Ramsey isn´t tapped and brought in by the Obama team to end the deficit programs. Now really...why with a guy with his success can´t they bring him aboard.


2 posted on 12/04/2012 12:50:36 PM PST by rovenstinez
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hoosier Catholic Momma; CottonBall; TenthAmendmentChampion; Chickensoup; JDoutrider; ...

I called the mortgage company for my official payoff statement and I am glad I did. I have to pay about $800 more than I expected! I forgot about winter prop taxes being due and will have to make up for an escrow shortage so that they can pay that amount! Dang, government gets me again!

Plus, I found out that you can’t just pay in the normal manner. They require a “certified check” or wire transfer. Then I tried to transfer funds from my MM to my checking account and was not successfull, seems I have to go to a branch to submit a signature card for the MM account I started on line.

I’m glad I decided to start checking this out! I am shocked at how difficult things are for closing this step.


3 posted on 12/04/2012 12:52:15 PM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Hoosier Catholic Momma; CottonBall; TenthAmendmentChampion; Chickensoup; JDoutrider; ...

I called the mortgage company for my official payoff statement and I am glad I did. I have to pay about $800 more than I expected! I forgot about winter prop taxes being due and will have to make up for an escrow shortage so that they can pay that amount! Dang, government gets me again!

Plus, I found out that you can’t just pay in the normal manner. They require a “certified check” or wire transfer. Then I tried to transfer funds from my MM to my checking account and was not successfull, seems I have to go to a branch to submit a signature card for the MM account I started on line.

I’m glad I decided to start checking this out! I am shocked at how difficult things are for closing this step.


4 posted on 12/04/2012 12:52:59 PM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rovenstinez

Ummm....because he’s a guy on the radio and they don’t want to get rid of the deficit. That’s why we have one.


5 posted on 12/04/2012 12:53:45 PM PST by AppyPappy (If you really want to annoy someone, point out something obvious that they are trying hard to ignore)
[ Post Reply | Private Reply | To 2 | View Replies]

To: rovenstinez

Do you really think that Obama is even remotely interested in fiscal responsibility, controlling the deficit and bringing America back to prosperity?


6 posted on 12/04/2012 1:00:23 PM PST by TADSLOS (No need to watch the movie "Idiocracy". We're living it.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: rovenstinez

PFFFFTTTT if anything Dave will be in the reducation camp with the rest of us...

Obama wants the deficeit. Obama wants debt. Obama wants America to fail so the imperialism of the Muslim countries will end.


7 posted on 12/04/2012 1:13:20 PM PST by Rightly Biased (Avenge me Girls AVENEGE ME!!!! ( I don't have any son's))
[ Post Reply | Private Reply | To 2 | View Replies]

To: rovenstinez

I have to answer your question with a question which is: Isn’t it obvious that 0bama is not interested in ending the deficit programs?


8 posted on 12/04/2012 1:16:58 PM PST by Kaslin ( One Big Ass Mistake America (Make that Two))
[ Post Reply | Private Reply | To 2 | View Replies]

To: rovenstinez

When Dave tells someone with overwhelming debts to go down to the basement, and crank up the money-printing machine, they might ask for his advice.


9 posted on 12/04/2012 1:27:53 PM PST by USFRIENDINVICTORIA
[ Post Reply | Private Reply | To 2 | View Replies]

To: Kaslin

Really, a whole year on that income? That’s very bad advice. If the guy can’t pay off a mere $9k in 2-3 months then something is seriously wrong. He should have that in pocket change or much more in savings. I simply don’t understand people these days. They’re making money hand over fist but can’t make ends meet. It’s all about MEEEEE! I’ve never made anywhere near that and still managed to pay off the mortgage way early and don’t owe anyone.


10 posted on 12/04/2012 1:43:24 PM PST by bgill (We've passed the point of no return. Welcome to Al Amerika.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rovenstinez
Can someone wiser than me give me a simple answer why Dave Ramsey isn´t tapped and brought in by the Obama team to end the deficit programs. Now really...why with a guy with his success can´t they bring him aboard.

Dave Ramsey: "Mr. President, you're spending far too much for your income. You're going to have to cut back on spending."

Obama: "Dave, I hear what you are saying. I agree with you that the Republicans will have to raise taxes so I can pay for what I'm spending and can then spend even more."

Ramsey: "That's not what I said at all. You have to cut sp..."

Obama: "Ah, ah, ah. You are part of the eeeeevil one percent. I'll just empty out your bank account for starters."

11 posted on 12/04/2012 1:44:13 PM PST by KarlInOhio (Big Bird is a brood parasite: laid in our nest 43 years ago and we are still feeding him.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: rovenstinez

Because Obama is a socialist with Keynesian and Hamiltonian influences regarding debt.

“A national debt, if it is not excessive, will be to us a national blessing.” - Alexander Hamilton

Why pinch pennies to repay debts when you can live it up on more borrowed money?

BTW, the debt is only “excessive” when creditors refuse to lend adequate funds to service existing debt. Thanks to the Federal Reserve System that simply will not happen. Ben Bernanke stands always ready to be the lender of last resort.


12 posted on 12/04/2012 1:54:12 PM PST by Skepolitic
[ Post Reply | Private Reply | To 2 | View Replies]

To: CSM

Thanks for the ping!

Be encouraged; you’re still close to reaching BS7!


13 posted on 12/04/2012 10:58:06 PM PST by Altariel ("Curse your sudden but inevitable betrayal!")
[ Post Reply | Private Reply | To 3 | View Replies]

To: bgill

No, he was talking in general terms for anyone in that situation. Not specifically about that guy’s 9 grand in debt. Perhaps it should have been written more clearly.

I’ve listened to him talk to callers in similar situations dozens of times and, given those numbers, he would tell them to buckle down and pay it off in a few months.


14 posted on 12/09/2012 5:02:51 AM PST by brewer1516
[ Post Reply | Private Reply | To 10 | View Replies]

To: Kaslin

Sometimes I think these “advice columnists” simply make questions up so they can answer them with canned boilerplate. Writing such a column must be one of the easiest jobs in the world. Real readers can’t be that stupid can they? Would somebody making $70,000 a year really fret over how they are going to pay off $7,000 in student loans?


15 posted on 12/09/2012 5:31:46 AM PST by SamAdams76
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson