Take Out a HELOC to Pay Off My Debt?

Take Out a HELOC to Pay Off My Debt?
Say goodbye to debt forever. Start Ramsey+ for free: bit.ly/3g11A2V
Visit the Dave Ramsey store today for resources to help you take control of your money! goo.gl/gEv6Tj
Did you miss the latest Ramsey Show episode? Don’t worry-we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch debt-free screams, Dave Rants, guest interviews, and more!
Want to watch FULL episodes of The Ramsey Show? Make sure to go to The Ramsey Show (Full Episodes) at: www.youtube.co...
Check out the show at 4pm EST Monday-Friday or anytime on demand. Dave Ramsey and his co-hosts talking about money, careers, relationships, and how they impact your life. Tune in to The Ramsey Show and experience one of the most popular talk radio shows in the country!
Ramsey Network (Subscribe Now!)
• The Ramsey Show (Highlights):
www.youtube.co...
• The Ramsey Show (Full Episodes): www.youtube.co...
• The Dr. John Delony Show: www.youtube.co...
• The Rachel Cruze Show: www.youtube.co...
• The Table with Anthony ONeal: www.youtube.co...
• The Ken Coleman Show: www.youtube.co...
• The Christy Wright Show: www.youtube.co...
• EntreLeadership: www.youtube.co...

[@TheRamseyShow]

Say goodbye to debt forever. Start Ramsey+ for free: bit.ly/3g11A2V

[@rupy1125]

"Sell so much stuff that kids think they are next" LOL 😆

[@MrPopples72843]

He’s been saying that for decades

[@cathyl7944]

@pinned by The Ramsey Show-Highlights Stop spamming Ramsey posts.

[@AtomicQuotient]

best comment ever

[@robertcampomizzi7988]

I remember the first time I heard that too.

[@pixigirl999]

You must be new here. Welcome

[@EJ-ye7wg]

Dave is so old school lol. He didn’t even listen to the question 😎😂😂😂

[@Inakamo]

Yah because he knows it already the guy will not listen

[@BrianW211]

Mathematically, rolling your consumer debt into a HELOC is "better" simply because you get the same amount of debt at a lower interest rate. You can't argue with that, but it only works in your favor if you have the same discipline that you would need to have to pay off your debt when the HELOC option wasn't available to you. The problem is that a person with a bunch of consumer debt is already either ignorant or undisciplined, and if that person hasn't gained enough knowledge or discipline, then rolling the debt into a HELOC might actually allow the person to increase their debt, making everything worse.

[@jcrowley1985]

It's lower interest because it puts your house up as collateral . If there's any risk that you can't pay it off , I would keep it unsecured. Don't risk your home

[@DoctorSmartyPants]

Yup! Well said!

[@Savannah-ed4rv]

That is SO insulting! My husband and I had debt because we were supporting my mother and my husband ended up with terminal cancer! Try having a $20 dollar copay for medicine and having 10 prescriptions every month at the same time you're off work because you found out you're looking at a stem cell transplant that will take you off work for at least a year! We incurred debt that lasted until after my husband died. You're an idiot!!!!

[@BrianW211]

@@Savannah-ed4rv, I very specifically said "consumer debt" and necessary health care expenses are NOT considered to be consumer debt. I'm sorry for the loss of your husband.

[@divergentmind2023]

we had major medical bills, lots of repairs (home and cars) plus small kids, maybe sell our house to live in a rental is another option but we wish to keep the house preferably, we already have two jobs. it is tough…

[@abrahamflores2566]

In summary " no we don't want you save money, we want you to feel PAIN for taking out debt and stay in debt longerrrrr"

[@darrellwarren3860]

I understand the principle of what they are saying. But I agree with you as to how they portray this situation. If you have the ability to reduce interest rate and bring down monthly expense it’s makes sense to do it and stay disciplined to snowball it. I appreciate him but sometimes his advice isn’t practical.

[@brianmccain8818]

Neither of you understand. If you want to get out of debt, you need to change behaviors and mindset. It took me 32 years to break the debt cycle. In that time I did the 401k loans, 401k withdrawal, balance transfers and HELOC and none of it worked. You take your foot off the gas then you've run up a credit card and all the interest saved is gone and you have even more debt. What did work was a realistic flexible budget that I tracked to and reviewed weekly. It took 4 years to pay off $90k of debt once I got truly serious but now living debt free and finally building wealth.

[@MSH3423]

HELOC loan ruined so many people’s life in 2007 - 2008. Get a second job as 🍕 pizza delivery or uber driver. Man up and get it handled. Increase income. Reduce expenses. Stop moving debt from CC >> Equity loan >> personal loan >> CC. Stop it.

[@seansurfn2]

ya but cost of living has gone way up and ppl make the same amount. i was breaking even and then food costs 1200 more a month for my family and energy bills etc etc.. i work two jobs too btw already. no way out unless i do heloc and then pay just that off. i drive 35k a yr for my car and every car i buy is used but i lose money in cars. this is communism and it makes it extremely hard to get ahead if at all unless i get another jpb making 2x more. i have a college degree and tons of work exp. and qualifications btw

[@KenRobertson]

Dave will never tell anyone to borrow money. That's not what he do. I understand that! I believe that if that person can use the equity and MOVE (KEYWORD) his debt around to a lower interest rate and keep the mind set of paying it off as quickly as he can (fired up) it would be a great idea. My opinion! One other thing. Most people think debt comes from spending. Not true. Most of the debt in America is due to medical bills. Or the lack of proper heath insurance. Unexpected medical claims. Hospitals. Not all debt is created equal. Just saying

[@austinmiller2102]

So 8% in comparison to 28%, I understand you aren’t paying it off you are moving it but if you can tackle one payment you can move it faster if you are smart and responsible with it. So say you take out $40,000 and your payment is $380 a month rather than have $40,000 in debt across multiple accounts for $2,000 a month and then you can keep making the 2,000 a month payment it just seems like a win in my book.

[@kristinacotran]

Completely agree!!!

[@workingdogwoodworks1455]

I agree 100%. It's just risky for the guy who says he now has an extra $1620 a month to go buy a boat lol

[@brianmccain8818]

But, now with a $380 payment, the fire isn't there to snowball. The $1600 goes to a new car or a vacation (on credit cards because Yolo instead of saving). And little Tommy needed braces. And you couldn't pass up the great deal on the new living room set. So 3 years later you have the $40k HELOC and $40k of credit card debt. But you saved all that interest, right?!?

[@symlexbrn5396]

The pain in the process of paying off debt is very important, when you're debt free, you will not borrow again.

[@christina678]

Not true.

[@tylercampbell6365]

That's where I am ..I don't borrow or sign anything ever..Never going back to that stress

[@Bigdaddy13568]

I owed 30k on a mortgage. Monthly payment was 2k a month. I took a personal loan and paid off my mortgage. Now I pay 900 a month for the loan. And I’m taking the 1k I saved on mortgage payments and paying off high interest credit cards

[@christina678]

Wow! Never thought about doing this!

[@alanchavez623]

Smart move 👍 💯

[@emojidinosaur7300]

thats a bingo.

[@user-ex8vd5jr2o]

I have been defrauded by heloc by overly inflating my property value and paid expensive origination fee then 3 months later suspended my heloc citing my property was significantly had declined in value. When I applied for a heloc loan on my residential property last May 2024 it was overly inflated up to $ 420,000 for a townhouse and was able to take a $200,000 line of credit causing me to pay an origination fee of $5,700 on which I paid after they deposited the lump sum money to my bank. I paid them back only taking $21,000 to pay my personal loan and credit cards balance. Three months later which is August of 2024 when I requested for another draw of $17,000 they suspended my heloc for the reason that the property value had significantly declined to $ 276 210. I felt devastated and distraught thinking that I had been scammed. They made a misrepresentation on the application for their gains. I'm not very knowledgeable regarding heloc and was not properly told/explained that once approved the whole amount will goes to your bank. I was not asking for a $ 200,000 loan. When I applied for Heloc at Figure lending took me 5 minutes processing including checking my bank account,they did their appraisal thru artificial intelligence and got the property value of $420,000 that's why they give me a loan of $ 200,000 to access. I checked their property appraisal recently and found out that they did the wrong address and made me felt like it's all fraud. The issue and my complaint was - there is no significant decline of property value. The correct value of my property should be on the upper $ 200,000 like to 270,000- 280,000 I owed 197,000 was expecting for a heloc of $ 20,000 or 25,000 at least. I know for a fact that my property was never appraised to more than $300,000 In conclusion if they have appraised it properly there should be no decline of property value and I should not be paying a HIGH ORIGINATION FEE of $5,700. Need help on what to do. I need to get some of my money back.

[@morrcomedy]

Ever since Ken started making hating remote work his personal mission, I can't stand him.

[@westonr4359]

Ken doesn’t like WFH because Dave doesn’t like it, they’re robots that just repeat dave.

[@morrcomedy]

@@westonr4359 Yeah I saw a video the other day where Anthony said "well what I always teach..." and then said something Dave has said for 20 years. I don't understand why they call them Ramsey Personalities when they're all severely lacking in the personality department.

[@azteca6695]

@@morrcomedy It's because they want to keep their paycheck.

[@dexterm1285]

They have to parrot Dave otherwise they get the ax..that is all.

[@Mr.Rogers91]

I think it depends on the industry or the company but I don't think a blanket no on WFH is just being stubborn in your stance.

[@brianvaughn3312]

You can do both, and should TODAY. Consolidate your debt into a lower interest option (HELOC may be best in this case) then "GET AFTER IT." But it's simply irresponsible to advise leaving the debt on a 25%+ credit card(s).

[@chancurtis7801]

I took out an HELOC Loan the payement is lower than all the the credit cards i was paying on.

[@KevinP32270]

facts.

[@Xadar24]

And this is a case where doing something like that makes sense. Because the credit card surely has the highest interest rate. Youre doing interest arbitrage. But some people pitch this stuff as if it was the smartest thing to do in every case and its just not.

[@markkauffman6184]

The important thing is to take that extra money you have and use it to pay down the HELOC faster. If you start spending all that extra money, you’ve gained nothing.

[@user-ih6vg4rr9r]

@@markkauffman6184and this is what should have been said. But Dave is fixated on his way…There is no other way. Although he doesn’t like it, it can make sense, but he has to be disciplined. The method still works though, whether they are disciplined or not.

[@floydbibbs]

It is a great ideal to get a heloc and if used correctly you can get out of debt quicker Dave is set in his beliefs and anything the goes against his philosophy on how to do things he’s going to shot it down quickly.

[@brianmccain8818]

See my comment above. I've done all the "tricks" people advocate and ended up in a worse position a year later multiple times. If you are well into your debt repayment and have changed behavior and mindset, it can work. But never never do it as the first step like I did.

[@theanimaster]

THIS IS TRUE!! I did this TWICE and it just made me take on more debt! I’m now working to pay it all off - even if it takes time.

[@ESponge2000]

I bet also when paying off higher interest debt, the reward in having fewer and fewer debt bills owed for paying stuff down feels more joyful as you knock each debt down, than getting rewarded by a lowered APR before you even take action and don’t then get to partake in removing the weight through action. Also The extreme discipline that can get someone out of debt the painful way is the same discipline when applied after you do that can get you a real savings so you can have streams of passive income.

[@oliviasmith3266]

Well You're right I also take heloc loans but I pay it out more faster There are people that clear loans .. you just have to have experience and also work for them

[@erodtv]

“Paying off your mortgage used to be a badge of honor. Now it's a sign that you don't understand how money printing and asset price inflation works.”

[@jasonrobinson4635]

So I shouldn't pay off my mortgage? Because not paying off my mortgage shows I understand how money printing and asset price inflation works?

[@ShantrelHope]

I love it! Mindset matters... "Selling so much stuff the kids think they're next!" 🤣🤣🤣

[@cordybluejeans]

I tried selling my kids but no one wanted them.

[@DoTheDomThing]

2:21 Good thing Ken checked Dave for a sec and said wait a minute rather judge or assume people lied about their intentions. People have to truly realize what they are willing give up or do to get from a to b and sometimes you don’t know the true cost of that.

[@mrgeorgeburdell]

Hey Dave, I'm thinking about doing exactly the OPPOSITE of EVERYTHING you recommend. May I have your blessing that it is a good idea?

[@yamamancha]

I'd drive Uber while delivering pizzas and sell my neighbor's cat before I ever took out a HELOC. Stop spending! People would be amazed how quickly money piles up when you don't have debt.

[@emojidinosaur7300]

millionaire ?

[@joshuakelly9743]

Love what Ken said about passion…gotta be willing to suffer for what you deeply care about. Christ set the ultimate picture of passion

[@brandonswan9247]

Trading unsecured debt for debt that can make you homeless is very very dumb.

[@GetMedQ]

refinance for a lower rate is not a bad thing. Spending the savings is

[@tomcripps7229]

I like the one about taking 30 years to pay off a steak dinner with reduced interest.

[@disneydad2514]

When your minimum payments go from $1800 to $600 this doesn’t sound bad. Use the extra $1200 to pay down principal

[@rainbowpandasays8851]

Some HELOC don’t let you put back the first 10 years only the last 20 😂

[@SuperSpiroman]

Well, read the fine print and ask the right questions. But he's correct. Going from 1800 to 600 and using the 1200 to pay it off a lot faster.

[@heavenbound7]

1 Corinthians 15:1-4 KJV Bible [1] Moreover, brethren, I declare unto you the gospel which I preached unto you, which also ye have received, and wherein ye stand; [2] By which also ye are saved, if ye keep in memory what I preached unto you, unless ye have believed in vain. [3] For I delivered unto you first of all that which I also received, how that Christ died for our sins according to the scriptures; [4] And that he was buried, and that he rose again the third day according to the scriptures: Ephesians 2:8-9 KJV Bible [8] For by grace are ye saved through faith; and that not of yourselves: it is the gift of God: [9] Not of works, lest any man should boast. Romans 10:9-13 KJV Bible [9] That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved. [10] For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation. [11] For the scripture saith, Whosoever believeth on him shall not be ashamed. [12] For there is no difference between the Jew and the Greek: for the same Lord over all is rich unto all that call upon him. [13] For whosoever shall call upon the name of the Lord shall be saved. John 3:16 KJV Bible For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. John 14:6 KJV Bible Jesus saith unto him, I am the way, the truth, and the life: no man cometh unto the Father, but by me.

[@RJRussoVids]

One day Dave will say, “Yes” to this question. One day! 🤣

[@GetMedQ]

Doubt it

[@walteralcazar]

The day has come!! Lmao interest rates in cc’s are through the roof, HELOC is a much better option

[@illmatic33]

If you caaaaaant control consumer debt then you won't be able to keeeeeeeep your houuuuuse.

[@christina678]

Not true.

[@liljaysdaddy]

Stumbled across this and I’m telling you the truth when i say I needed this. Wow. Thank you!

[@JonnyDee]

This doesn't make sense. I have unsecured debt, & my income dropped almost 70%, so its impossible for me to pay anymore against my unsecured debt than I currently am. These unsecured loans (credit cards, etc ) are increasing month by month because theyre variable. Some of them are 22%+. I own my home & have equity, so if I can get a HELOC, pay off the unsecured debt & have an interest rate thats 1% or 2% + Prime, I "should" have more $ left over at the end of the month to pay the HELOC off no? Im not understanding why this scenario isnt a good idea.

[@tubenachos]

Michael picked the wrong day for HELOC questions 😂😂😂😡

[@ntme6506]

What happens if you like beans and rice??

[@andrem1238]

Consume them. Rinse and repeat, ect.

[@tomsandoval2607]

You get to keep even more money over your lifetime. 😊

[@edgeofsociety]

Then you won't have to call Dave for help.

[@jimkiser1429]

What I don't understand about Dave's position is this: This guy, Michael, is paying X number of dollars per month to pay off his ALREADY acquired loans, which there is nothing he can do about at this point. Perhaps those were bad decisions way back then, but he already has these debts. OK, so now, fast forwarding from then, now, apparently, Michael has signed on to Dave's methods, since he talks about the debt snowball. Further suppose that by going to a HELOC, he can get a much better interest rate(if that's possible I don't know, since I don't know a HELOC from a purple colored dog.) BUT, as long as from now on he follows Dave's methods to the letter, why shouldn't he do that??? Since it's less total dollars he has to pay off.

[@ASimoneau]

Because the consequences of not paying off your consumer debt is that you wind in collections and eventually sued, or your car gets repossessed. But the consequences of not paying off the HELOC you took out to pay off your consumer debt is your house gets foreclosed on.

[@j3rocketeer]

@@ASimoneauAmen!!

[@rainbowpandasays8851]

Chances are if your in that amount of debt you will not have the discipline to handle a lump sum of extra cash possibly. Only with the HELOC , when you mess up you’ll not just lower your credit and get your card repoed , you’ll also loose the house.

[@andrewcazarez1308]

But if interest rates are 28% in 15k of debit and you can get a 8% loan isn’t that alooooooot of savings monthly! ?

[@nickpalmer4832]

I agree with he said about getting out of debt and true discipline is needed with a HELOC! If you have the discipline I think it’s a great idea. The interest rate is way cheaper than the credit card interest. Do not use the cards again leave alone! I repeat leave the cards alone !

[@miriamstrauss]

*"If you really look closely, most overnight successes took a long time."* *-- Steve Jobs*

[@28151616pen]

Ramsey you make no sense. If you have an opportunity to pay $400 a month instead of $1200 a month with a equity loan it’s a no brainer! Use your head and don’t be a no brainer!!

[@kb1236]

See that one problem, you should continue to pay 1200 to get out of debt sooner. the main problem is you are risking your HOME.

[@dexterm1285]

Pretty much robbing Peter to pay Paul...all you did was move debt around. Just pay it off.

[@rubenve79]

If Peter demands an interest rate that's substantially lower it still makes sense.

[@dexterm1285]

@@rubenve79 It only makes sense if the debt was large and very high interest rate... he said it was small so I'm guessing $15k and under. Just knock it out and dont do it again. All that trouble to maybe save a few hundred maybe wouldnt be worth all the hassle.

[@rubenve79]

@@dexterm1285 That's a fair point

[@incredulousd9408]

@@dexterm1285 sometimes, that few hundred is what feeds the family 🤷‍♂️

[@nickpalmer4832]

No you moved it with a bunch of interest ! Some people are at a around about and can’t come out. If you make the payments (minimum payments) you will feed the creditors and as a matter of fact the creditors love u to make minimum payments, they make the money ! Nah I can agree that it takes discipline to be successful with a heloc but I do think it’s a better option.

[@jamescadzow9545]

If one can simplify their life even more life becomes more peaceful and free.

[@jerstiene6861]

Yes!

[@JK20239]

You still need verifiable income to get the HELOC. Better off paying off the debt with the job you have. Banks arent dumb. They don't want the house, they want their money.

[@kb1236]

Better reason, my Mom told me to never borrow against my home because it puts your home at risk. We never know what might happen. become disabled, loose a job.... and if you can't pay your loan with a lien on your home you will loose it.

[@Bykv78]

What's wrong with moving debt to pay less interest? This was a wrong answer.

[@drjoe1886]

There is a company out there, and I'm not going to mention its name, who teaches and sells people on using HELOCs to pay off their mortgages and debt faster. All you need to do is give them $30k, if not by cash by financing it through one of their partners, and they will teach you how to achieve financial freedom, pay off the mortgage and debt, potentially take out BLOCs and life insurance to use all that for cash flow, and this will help you become wealthy and achieve all your dreams, replace your job, etc.

[@WhoDoesntHateMiley]

replace unsecured debt with secured debt and tie it to your house? 🤨

[@DebtFreeDad]

My thoughts exactly

[@youngblood23rb]

Bingo!

[@Fater4511]

wouldn't this be the exact same thing that Dave agrees is a good idea. take your current house and sell it, pay off debt, then get a new 15yr. mortgage at 25% of your take home. all that matters is how quickly you can clear your consumer debt. That is Dave's plan.

[@MillionaireMindsetClub]

There are no shortcuts in life.

[@ImVeryBrad]

I have felt the pain of paying off $24,500 of debt. Never again

[@MichelleLyn84]

I learned this the hard way! Don’t do it!!!!

[@Tearial311]

I don’t really agree… when you pay $300 a month on a credit card and you only pay $100 on the principle… where are you getting? Coming up with $200 more dollars a month isn’t easy with kids

[@OhYeaMista]

Moving thousands of dollars from a 29% cc to a single digit heloc could in fact move the needle. You can get serious about getting out of debt while making good mathematical decisions at the same time.

[@bobmarker6812]

I had to click on this after seeing the title.

[@rollingacresfarmstead206]

I dont know when we refi'd into a 15 in march of 2020 we wrapped 17k in. Fast forward 15 months we have cut 41 extra payments off the mortgage with extra priciple payments, and well below where we would have been doing it separate. I must be in that 1/10 group, original payoff of 4/25 down to 12/31 after next week we will have 52k paid off 140 to go

[@Blacksilver323]

When all my cost of living went up 10-15% but I only get a 3% annual raise -.-

[@debhalld9794]

Unapologetic truth here!

[@ESponge2000]

You can have a scenario where you went into debt while out of work and then you landed a job that would have built savings but your debt interest is so high from before you got your job that your new income is tied to paying debt every penny …. In this situation maybe HELOC or half HELOC your debt so you can manage getting out the hole ? I wonder if that case is different provided you are too deep in the hole to balance your budget unless you sell your home

[@TheLizardKing1967]

Why is it every time I see Ken Coleman, he reminds me of a younger "Boz Scaggs" . That is a compliment by the way Ken. Great show!

[@johnSmith-uz8nl]

Wanted to add... IT MAKES ME SICK when I hear them talking about gazelle intensity and three or four jobs for SINGLE PARENTS WITH KID(S). I completely disagree with this not matter how bad it is. Yes you need to balance your financials but to me the most important thing in the world is FAMILY, specifically kids. Single or even married without kids is one thing but to tell a single MOM to get FOUR JOBS is one of the stupidest things I have ever heard.

[@zacharygillam5456]

My mom who was single worked three jobs with four kids. It's 100% possible and all of my siblings learned a lot. It changed our family tree for the better. Not seeing her was difficult, but we got to eat and she paid her debt off so we could do things as a family. Everybody needs to stop complaining about you easy life.

[@johnSmith-uz8nl]

@@zacharygillam5456 I am obviously clueless about this. Thank u for your comments.

[@mattyoutubes]

Ken, you are not doing what you were created to do. You should be a preacher. 🤣

[@Wall2000x]

I wish he would just say yes. These people are going to take out a HELOC and suddenly they could lose their house. Nobody is going to jail for credit card debt. AGAIN NOBODY GOES TO JAIL FOR CREDIT CARD DEBT.

[@xiongbenjamin]

This is why i don't listen to Dave that much. He didnt give the guy a chance to fully explain his strategy before cutting him off.

[@juandeleon1665]

Velocity banking works!!

[@jasonsaeger]

Single moms with kids? My question is how many of the single moms with kids are getting child support and alimony? How about the strong independent men that have to pay child support to pick up their bootstraps and get out of debt!? Maybe we need to put these men on a pedestal?! Because guess what I’m one of them.

[@neilsmith9066]

No! Take out Heloc to buy more investment properties use the investment properties to pay off debt then have steady cash flow when debt is paid off.

[@craigcarter400]

I wonder how many repeat refinances happen after someone does that

[@RobTetrault]

In some cases a HELOC can be VERY useful

[@ddfamf88]

Tell us when?

[@BILLIONAIREGH]

Dave did not say it is bad. He said... 70% behavior. Change your habits PERIOD

[@nickpalmer4832]

@@BILLIONAIREGHby that point it’s too late ! This is not a bad option for everybody !

[@julied915]

Hard work is worth it

[@NickStratulat]

Absolutely 💯🙏

[@captainr.8882]

NEVER...A HELOC IS TRANSFER OF DEBT, NOT A DEBT PAYOFF! 90% of the people who put their home in jeopardy to "pay off debt" end up in debt within 60 days. NEVER RISK THE HOME!

[@brandonlambert8021]

Ramsay is wrong and it's frustrating. Thinking you know it all and ignoring other possible ways of taking care of the issue. Imagine telling someone to hold onto a higher interest credit card or loan instead of consolidating into a lower APR and saving a few hundred dollars of cash flow every single month and being able to put that back into your debt payoff.

[@marieHuefner6891]

Can I refinance my house to pay home equity loan?

[@TheRealDohnJoe]

Fired up and wired up. Haha nice. Had someone a Co worker the other day try and sell the heloc to start flipping houses. 🙄

[@zakiyyahhill9510]

Disagree with this as you save money by lowering your interest rate, and can pay your debt off faster. You do have to be disciplined but it will take him longer to pay off using snowball then it would paying one debt off completely... however do what's best for you, interest rates is a problem, it makes the banks richer... this methodology kept you in debt longer

[@johnnyblast326]

In a word...Magnanimous!

[@LetsTalkPersonalFinance]

I wonder what Dave will say 🤔

[@NickStratulat]

His opinion, in general he speaks truth but some answers are very arguable

[@ashtonhealan]

This seems like a strange response. Wouldn't it be financially strategic to take a pile of APRs and turn it into 1? How do we know this guys issue is actually focus rather than getting killed in interest?

[@jamesgrose4819]

Bad advice for people who have already paid much their debt down, but are looking for an additional tool to help stop throwing money out the door on higher interest per month. Many people have already suffered and need that additional savings of $300 a month in interest savings in order to pay down the debt. For that 1 person out of 10 Ramsey is saying us out there, he just screwed that person over. How does he know the caller isn’t that guy? He didn’t ask enough debt to income ratio info etc. Ramsey gave a lazy answer.

[@jeffdorris5321]

Nice work 🎆

[@ABCD-si7px]

Dave run the numbers if you are correct.

[@Beyondesp]

Is there a video where dave covers using a heloc to help pay off the home mortgage faster ? I see tons of videos on that and i always am suspicious of them. At the end of each of the videos i always wonder why not just make extra principal paymenrs instead.

[@dec1slh]

There are many ways to accomplish the same goal. Stop being so simple minded.

[@Iamjoeycross]

@@AliciaMcIntire no it’s actually better. Look at both products. A mortgage has front loaded amortized interest. A HELOC has simple interest. That by itself makes it better. Also if you use the HELOC like a checking account you can deposit your income into to to push down the principal to pay even less daily interest. You didn’t just switch from one form of debt to another. You gain traction and changed the table of interest owed by switching products.

[@Rsantana380]

i will take it 299 10 year instead of 650 a month, then i can takle and pay it in 3 or 4 years, cancel all credit cards exept 2 which every home owner needs

[@adamajs3836]

I think Ramsey did not understood any of the jargons from that caller. He had no idea what the dude was talking about and came back to the bean and rice.

[@caronnaguy2723]

If i have debt that results in a minimum payment of $1300/month and i get a HELOC or equity loan that results in a $400-$500 payment/month, sorry.. thats something i'm going to strongly consider.

[@yoopermann7942]

i went saving from saving 10% to 50% of my monthly income so i can get my dream

[@yayyareaa2997]

Dave bringing that heat 🔥🔥🔥

[@satturatedphat]

Dave bringing that outdated boomer stock crash mentality. Dave's way isn't how rich people do it, I'll listen to the rich instead of a broke mindset boomer.

[@ukiemanserg5163]

I’m about $700k in debt 💸 😊 debt motivates me to get my ass up in the morning 😂

[@randy944]

Wow- this poor guy got the MUTE button at @1:07.

[@DoctorSmartyPants]

Ken is so spot on! He is the smartest person in Ramsey solutions.

[@DavidRamseyIII]

And Anthony O’Neill is the dumbest man in all of Tennessee

[@ruby2thursday]

...and get rid of as much 'stuff' as you can before you sell. go rent for a little while...but have a plan.

[@Frissdas1207]

Math wise, a heloc is hyper efficient. The problem is most people are not disciplined enough to use it correctly. Dave way is more expensive but safer.

[@truthseeker6370]

Just from the title, I can't believe this call is chosen to be on the KZbin daily Dave Ramsey...excuse me, 'Ramsey Show' Highlights page. Anyone who follows Dave already knows the answer. Seems this page is geared toward newcomers. Where do Aware followers go to find potentially new information @ Dave Ramsey???

[@CivilRightsLeader]

It's the "Selling so much stuff the kids think their next" for me 😅😅😅

[@davidmilhouscarter8198]

I'm beginning to think Dave doesn't like debt ... (I've been a Dave Ramsey fan since 2008.)

[@ABCD-si7px]

So Dave doesn’t do math? Going from a huge interest rate to a much lower one allows you to pay it off sooner. Sometimes it seems like Dave works for credit card companies.

[@Whitericeinmysalad]

Good morning. This should be interesting.

[@DebtFreeDad]

At least he didn't yell 🤣😂

[@EDUAROSOLAS]

Dave should teach people the billionaire method: Borrow against your assets to avoid paying taxes.

[@HenryPaulThe3rd]

How does that work when you have to make income to pay back the borrowed money, which would be subject to income tax?

[@vqinred9689]

@@HenryPaulThe3rd margin loans

[@nigelmcgill4916]

I love Dave Ramsey but I invest in real estate and definitely don’t do EVERYTHING he teaches 😬 still love him and most of what he says tho 😌

[@DebtFreeDad]

Ditto gettingout of debt 100% agree Investment strategy 60% agree. Lol

[@bangladeshirealtor]

yea because his method will take you decades to scale a portfolio lol

[@nigelmcgill4916]

@@bangladeshirealtor exactly! Lol. I’m in the process of getting a heloc but I’m using it to buy another house and not on consumer debt lol.

[@DebtFreeDad]

@@bangladeshirealtor facts

[@Hustle_And_Grow23]

Same

[@WolfdogsRescue]

I can’t stand Ramsey. “You need to get FIRED UP, GET MAD, GET PISSED OFF! That don’t help u out when u make $20/hr. Work full time. Have applied for every job within 60 miles of your house. Bills can’t get any cheaper than they currently are etc… We all can’t just be millionaires like u who inherit over $1million from our parents Ramsey…

[@azteca6695]

Grumpy grandpa Dave

[@blackworldtraveler3711]

Broke caller.

[@ddfamf88]

And he is awesome, sonny

[@Sportsbreak149]

Dave just making up statistics

[@wfgdaniel]

I needed to hear this today. Thank you.

[@rainbowpandasays8851]

Almost a year later ,How’d it go ?

[@Hustle_And_Grow23]

I feel like most people who call in could solve their problems with a simple side hustle 🤷🏻‍♂️

[@volley1414]

Yeah but that’s too much work for most people.

[@spencerallen5881]

Revolving interest in a HELOC PAYS OFF LOAN OR DEBT! Velocity Banking works💪 . Do the math!

[@OG823]

What a video

[@kushkushlungz]

Translation: for Dave-ish, once you get your budget and sense of urgency in order, you would then want to look into consolidating to a lower interest rate. It actually might help you pay it off the debt faster. For Daves plan, he would have you pay off your debt as quickly as possible(and it is the best way), so the interest rates don't matter that much

[@dcsmooth]

Dave Ramsey: President of the Society of Boomers. Must be nice to be able to tell your audience they need to live on “beans and rice” when you were able to buy your home with 3 raspberries and a nickel How long does he think people live?? Work three jobs for however many years so you can maybe spend your last few in the nursing home debt free.