How Do I Pay Off Debt When I Can't Afford The Minimum Payments?

[@vickieclark5931]

California is a beautiful state with a lot of fun things to do. But if you have to work 3 full time jobs to live there, then that defeats the whole point of moving there.

[@MJKT95]

You’re absolutely right. California is great for people making $200K, but the state is really only good for vacations, not long term. Last year, I was living with three roommates and in order to afford my third of the rent, I was working three jobs and had to ask my parents to cover the other half. I eventually had to move back in with my parents and I still can’t afford rent even though I live in a much cheaper area.

[@socalindi8241]

She lives in SB which is the armpit of the Inland Empire. This person needs to get on a budget pronto!

[@glennsmith6380]

Move to Texas

[@jadakizz78tulie33]

True

[@7resist7tyranny7]

Glenn Smith too humid

[@thatscardo86]

Ive been Binge watching Dave Ramsey for two weeks now.. his info is pure Gold

[@ludx21]

Same over here 😬

[@obilim2155]

Joe joe Same, I’m 17 applying to colleges rn and I’m really glad I stumbled across his channel. I was thinking of going to a pretty pricy art school to study animation, but after seeing these vids I’m not so sure. They didn’t scare me away from my dream job, just taught me how to not be too stupid following it

[@john1425]

Soon youll be able to graduate from Dave and start following people who teach you to leverage debt responsibly.

[@obilim2155]

Jimmy Bob pls recommend, any name is helpful

[@john1425]

@@obilim2155 "Meet Kevin" and the best source is "Bigger Pockets". All real estate stuff. Full disclosure I'm still working on paying down consumer debt.

[@cutlerylover]

Its funny what some people think sacrifice is, some people think sacrifice is not getting an extra appetizer or dessert at the restaurant every few days when they go out to eat and others know sacrifice means not eating anything on fridays, lol...

[@BLdontM]

As a very long time viewer of your videos, I never thought i'd see you in the comments of dave ramsey. This chick is weird though - 70k income and only bringing home 40? There is something she isn't saying. She has some funky deductions going on. What is minimum payments on 20k of debt? It has to only be a couple hundred bucks. That is nothing

[@Vinnytwotime]

Food is the number 1 priority. You should know that big boy.

[@cutlerylover]

Ahh big boy, you must be the collect kid in the 5th grade...Im kind of shocked someone so simply would be interested in a financial advice channel....Hopefully you and your calculator can keep up with the conversations :)

[@garyodriscoll7988]

vinny thehourshower an adult does not need to eat everyday. You’d be surprising how easily it is to do.

[@SnookOnTheFly]

What’s even funnier is what some people think a “need” and an “emergency “ is.

[@KatHamilton100]

I've paid $19k in 10 months (90k household income) since I started to listen to you.

[@PInk77W1]

Awesome. I started 2018 with $11,000. cc. Now sept 1. It’s $5000.

[@hngrypanda5973]

Wow with 90k you shouldn't be in debt in the first place lol. Good job though

[@kelleykalomiris1256]

Good for you. You're rich though, so your plan isn't really practical at all.

[@jeremygjonaj1487]

@@kelleykalomiris1256 90,000 isnt rich. That's considered middle class. I've even heard Dave talk about 80,000 not being rich enough to afford a $40,000 car.

[@MrDigztheswagking]

I'm 500,000 in debt after watching this show

[@TheMeganExperience]

She said she makes 50k before taxes which means her partner only makes 25k... and they pay 1k in day care per month. the partner needs to quit their day job and stay home with the baby during the day then deliver pizzas or drive uber at night when she's home from work.

[@denisenoles3159]

I thought she said $70,000 so that means dude makes $20... before taxes. He needs to step up his money making game.

[@johnsmith-zx5er]

pretty much what I was thinking.

[@qwerty48324]

He could just stay home with the kid. Thats $12k of his $20K.

[@williamryan6794]

If door dash and uber didnt cover the cost of gas why do people do it at all? It is a voluntary transaction to drive for these services. You are spreading lies. Stop it.

[@jem5750]

i feel like your comment is the best advice from this video. lol

[@OscarMartinez817]

Already saw the title about debt and just have to say please just please guys if you can't afford something with your own money don't go broke borrowing someone else's money (Aka the Banks)

[@candicemay]

I work dayshift & my husband works nightshift so we dont have to pay for childcare.....saves us close to $300 a week for both our kids

[@sasilver1]

That’s smart

[@dinimakhmudov1674]

If you guys are still doing this, how is that working out? This kind of schedule can put a strain on the marriage.

[@candicemay]

@@dinimakhmudov1674 it works for us…we do have some days off together

[@jborrego2406]

That’s what my parents did when I was young one stay home as the other worked then got off took care me an other went to work

[@BoldFollower]

I had zero debt…. Then I got married and had kids and life happened. I agree with Dave, I love Dave. I also understand life is unpredictable. I planned to pay an extra $12k toward debt last year and every penny of that went to fixing things that broke. Don’t feel bad if it takes longer than you think. Keep going! You can doooo it…

[@bewusstsein3527]

I have 6k debt and i only earn 400 a month.. im screwed..

[@buckybarnes3803]

Only in California can you make a dual household income of $75,000 and be behind in your bills. Other callers are calling in with less than that and are becoming millionaires (over time of course).

[@JacobslifeinVegas]

San Bernardino is not the same cost as LA or San Francisco. Not all of CA is expensive

[@highlyfavoredMG]

California NY NJ also

[@mabelw7]

75k two ppl is bad

[@Boomer8003]

I live in California & make $7k a year. About 145/weekly.

[@7resist7tyranny7]

Quagmire Doing what? Sleeping with women? Quagmire you perv!

[@maddytcb6072]

Act your wage.

[@IllinoisTrafficAttorney]

That's a brilliant concept

[@ketinarenea8499]

Love it

[@mariarobertson9772]

That is major truth. That's a good word! Gotta stay humble.

[@13Grneyez]

Truth Exposer 💯

[@bluluckyduckie]

🙌

[@laksitamochtar]

Two options 1. Living below your means 2. Making more money

[@Justforfon]

you forgot option 3 the fastest option of all - live below your means and make more money :D

[@reneejones2627]

option 4. get on a pole and make that money honey!

[@fferguson2013]

Agreed

[@tonysoprano9370]

Make more money? Is it really that simple for average joe ? Makes me laugh.

[@ambientdave]

@@tonysoprano9370 I agree

[@Holdeenio]

I’m impressed with her recall ability of the figures. Often people don’t have a clue 🕵🏻‍♀️

[@hibiscusangel7376]

She’s definitely prepared

[@gooney0]

Here is a tip I've had great success with: Every year go through a few months of bank / credit card statements and look at what you're paying for things. Insurance, rent, cable TV and so on. Now check and see if you're still paying a fair price. Ask your friends what they pay for these things, and shop around a bit. I managed to save on cell phone, car insurance, and cable tv. That's hundreds of dollars a year.

[@rositasierra5935]

Great idea also go through the statements and see what you can cut back on. What are luxurys and what are needs. When my husband asked me to help him with his he was shocked to find he was spending about $10-15 each week on snacks from where he worked.

[@MelModica]

Exactly, audit your whole bank account and see where every penny is going and eliminate all unnecessary spending! Ive done this and paid off 2 credit cards in the past year. I’m using the snowball method and paying off smallest debts first! Before I buy anything I ask myself if it’s a need or a want, it’s it’s not a necessity I don’t buy it!

[@captainfailtv]

Dave solution to everything beans and rice. What if i want Ramen noodles

[@kenny3269]

Mrdirtyuncle01 hilarious!

[@vickieclark5931]

LOL

[@beccadotelpy]

Mrdirtyuncle01 best comment I've read today. 😆

[@PInk77W1]

Oatmeal and raisins

[@Elena-er7zp]

lol Dried beans are 10 cents a serving and contain fiber, protein minerals. Rice is 7 cents a serving. It's usually fortified with minerals. Manchuran Ramen is 20 cents a bag and is basically dried fried flour in string form. Plus beans fill you up for longer than ramen. I know it was a joke, but seriously beans and rice are the better way to go.

[@marshpartyof7tabitha25]

I don't understand how their not making their bills. We make the same with money with 5 kids and more debt. She has to be spending and not watching

[@paulaaquino5847]

shes in california

[@homemakingandhealing4767]

Maybe she has a higher interest rate

[@KennyakaTI]

Tabitha Marsh where do you live?

[@JacobslifeinVegas]

Paula Aquino San Bernardino doesn't have the same cost as places like LA and San Francisco. Not all of CA is super expensive

[@KennyakaTI]

JacobslifeinVegas inflation is going up everywhere. Even living here in Georgia isn't cheap but California has the same state tax no matter what part you live in. It may not be silicone valley but cost of living is still higher than other parts of the Nation

[@sunset6010]

Dave : You still have your son, right ? Lol

[@t.z6875]

Lisa Muryn what's with his son?

[@migdalin92]

Teresa Zinzi It has nothing to do with his son. It's Her son. Did you saw the : after Dave?

[@sunset6010]

Teresa Zinzi it's what Dave said to the caller

[@tamekad-b1014]

Conservative Prosecutor or lost custody some how...when he asked her that question I was just like gees. They seem to be spending a lot on their son, things around the house, their lifestyle or something. They really need to leave California. I pay 1.3k in rent a month and 1.6 k with everything. I only make like 34k a year, I'm stuggling with my debt and I have more than her. However I am usually able to make minimum payments.

[@tamekad-b1014]

Conservative Prosecutor I understand that, relax. Instead of making a joke out of situations that are actually happening, I said that she could have lost custody giving a real life example since the woman worded as if she didn't have her son anymore and Dave asked her the question, but thanks🙄

[@TraciJehan]

She makes $50k and he makes $25k???? He needs a better job or she's leaving out pertinent information...

[@gatorkissman]

Maybe he cleans toilets for a living.

[@TheMyshine09]

Right ! I suggest moving to cheaper state . It’s amazing how she making it on $40k in CA

[@MrDigztheswagking]

Lol

[@XFizzlepop-Berrytwist]

Traci Jehan Watley This is the reality though. Not everyone can find jobs that pay higher than min wage. Without some sort of degree

[@dTopnotes512]

Yeah it didn’t make sense at all

[@littlejimmothy2818]

These people clearly spend more then they make and neglect the debt

[@LisaVanGemert]

If they're paying $1k in child care and her husband is only making $20k (she said gross was 70 & she made 50 - I can't believe Dave let that slide), he should work part time while she's home and they should ditch his job because he's working for free.

[@rositasierra5935]

He should get rid of that job and get a better paying one.

[@insideoutsideupsidedown2218]

Dave does not mean actually to always eat beans and rice. He has stated to eat at home, buy groceries from the grocery store. Buy the food you can afford as part of your budget.

[@joshuatate5671]

She needs a budget badly.

[@johnf1577]

You won’t see a restaurant unless you’re working there 😂

[@Stormy867]

John F i know I was cracking up! And dude said beans and rice budget 🤣 no wonder my dad cooked that all the time!

[@Musicienne-DAB1995]

Love that line.

[@ShawnJonesHellion]

restaurants are definitely for people who have too much money. then they say they are poor an need money after spending $50 a day on food 🤣🤣🤣🤣

[@shikha5246]

Beans, rice, vegetables and fruit. This is the only way I'm okay with the cheap meal plan. I have to have my fruits and vegetables to feel more energetic and motivated to work more hours.

[@KatieBellino]

Yup, just have to grab the affordable ones. Bag of apples, lettuce, cuke, tomato, a few bags of frozen.

[@---cr8nw]

And have a "splurge" night once a week with meat. The splurge night is a good way to keep friends. It's hard to keep friends when you don't go out to eat or don't go out drinking. But inviting people over for dinner a couple of times a month lets you stay in touch without overspending. It shows them that you care, even though you can't (won't) spend $40 to go out to eat with them.

[@scorpion777silvermoon3]

VEGGIES here in DFW are HIGH... only the food that is not good for you is CHEAP

[@shikha5246]

@@scorpion777silvermoon3 Frozen veggies at dollar tree (check expiration dates) can be an option or at any grocery store. Sometimes they’re cheaper than fresh and can be better

[@jborrego2406]

Ur vegan

[@fhuber7507]

You CUT something else from your budget. . You do not need cable TV. CUT THE CABLE . Find EVERY "optional" bill and cut that from your budget. This might mean CUTTING your cell plan and moving to a WalMart or TrackFone plan for less than $30 a month. . I've used the "buy a card at Wally World" phone plan for over 15 years. The current WalMart "Friends & Family" plan is $29.95 a month and there is no option to charge anything to the phone. No added taxes, no added fees and it gives OK (not great) internet access. Its enough to watch KZbin videos like this one. . FIX YOUR BUDGET!

[@bobbyb7672]

That $1,000 a month daycare killed the budget.

[@Elena-er7zp]

Ralinebe 233 yeah it's true, but to stay home and not work would cost 25k.

[@poodlegirl55]

Yeah, and I don't care Dave says.

[@yasmanybaez477]

If she shops around she should be able to cut that bill in half

[@iheartlreoy8134]

poodlegirl55 because it’s just an excuse

[@MornevanWykSubscribe]

@@poodlegirl55 he don't care

[@BrandonMcdonald-b3g]

I am working 73 hours per week working two jobs to pay off my debts, so far since July I have brought $32,000 down to $23500 and I should have it all paid off by next summer. My second job is at a furniture store where I earn commission and its really helped me out. I would recommend a sales job like that at part time as it’s not a strenuous job and just requires you to socialize with people

[@flowforever9084]

Awesome

[@brendaechols2228]

So glad i cancelled my phone insurance. I never used it except twice in 10 years. Waist! 15x3=$ 45 monthly saved. $ 540 a waist a year!

[@chiaraippoliti]

Waste*

[@sasilver1]

@@chiaraippoliti 😂😂😂😂😂

[@markbsecondary394]

Get rid of cable

[@adrianb6942]

get rid of netflix

[@ineedhoez]

Cable aint the problem.

[@barbaraleszczynski2214]

Mr B ....I have to agree! Cable is so overpriced....just stealing from the average family!

[@barbaraleszczynski2214]

ineedhoez .......I agree to a point...but hope you agree that cable is definitely so overpriced. Cable companies are gouging the average family.

[@garyclark6427]

Regarding the 401k contribution, she should look at running the scenario of making a small 2-4% contribution. Sometimes you get a higher take home even with a small contribution. And if your company does a match, it’s even a sweeter deal.

[@dawna4185]

god, i would dread becoming sick in a country where medical care is a luxury for the rich....HORRIFYING!! but on a positive note, after listening to this channel for a bit, i got tough with self and liquidated approx 600.00 bucks worth of stuff i had lying around collecting dust in my house. lots more to go but what a freeing feeling knowing i could lose my attachments to pointless stuff!! my debt is so low now that my tax refund will eliminate that and will be smooth sailing!! plus, i can reduce my work schedule so i can enjoy what is most important and that is taking care of my mind, body and soul in this crazy world! thanks Dave!!!!!

[@wlonsdale1]

What country is that?

[@spankynater4242]

She didn’t get sick, she had a baby. Learn to figure these things out.

[@spankynater4242]

@@wlonsdale1 The one with 40% plus tax rate.

[@KeatonDee]

I live in Vancouver, Canada and I gross 105k but take home roughly 65k. Must be nice to live in some of these states with low taxes, Dave always seems shocked about the gross vs net from some callers.

[@jborrego2406]

I don’t know why he ask about gross. I only care an use take home pay cause that’s the money I get lol

[@crazeekids9744]

Caller- I pay $1,000 month daycare Dave- I don’t care. You should still be able to do this. Sorry, what? $1,400 rent and 1,000 daycare tells you right there where all their money is going.

[@omarcervantes9752]

Dave doesn’t even know how much daycare costs

[@paulma222]

“You still got him, right? 😂😂😂😂

[@Ces999919822]

“Neither one of you work full time?” LOL

[@BigHayes7771]

70 k is low income in California she's poor

[@JacobslifeinVegas]

chadwick hayes Not in San Bernardino

[@KennyakaTI]

JacobslifeinVegas yes it is

[@lifewithmandy5220]

What? $70,000 is low income? That is outrageous! There's no way I'd live in CA if $70,000 isn't enough income. $70,000 is super high income in Western PA!

[@fortis619]

Pretty much , to make it in San Diego you’re suppose to make at least 100k other wise you’re considered low income

[@JustinTheJT]

With $70,000/yr, you can live like royalty in KY

[@bcvc3365]

You deserve to be great, Dave!

[@getmeouttahere3595]

I know this is a super old video, but damn. The math is NOT mathing. How did Dave Ramsey not even go further into this?

[@zabeth1968]

Wow, that kind of debt is just easy to solve regarding how much you make. It don't matter if you have a child. That income tax can solve to pay half of your debt. 12k is a student's credit card debt. Dave is right, you have all the chances to pay that debt in about a year.

[@randomvideosn0where]

Even just with minimum payments if you can hold it together long enough everything gets paid off. There has to be something burning money here, probably too high standard of living they "deserve".

[@irishcladdagh3]

Thats it....going out when you should be staying at home....eating out when you should be cooking at home....those 2 right there will put the simplest person in debt big time.

[@mattbowdenuh]

Sounds like the state taxes in Cali are ridiculous. $70K income and $30K coming out in federal/state taxes?!?

[@kj7653]

Yeah. I figure after taxes and health insurance and lots of other line items..... plus my charitable giving, my take home pay is half of my income. My aunt always told me, plan on living on half of your income. With taxes that is true.

[@apope06]

Dave doesn't understand that a fast food worker making $14,000 per year will simply not be able to make payments. As for thos lady... someone who gets cancer or a disease is not at fault here. These insurance companies are criminal.

[@OscarGonzalez-ih1vc]

The log jam was an awesome analogy in his book.

[@lennonlime7326]

4:00 Dave trying to figure out what’s missing. 4:49 we pay $1000 a month for daycare. Why not have all your numbers ready when you call.

[@Helthurian]

She clearly spends far too much every month. Theres no way she can't pay that small amount of debt down.

[@ShawnJonesHellion]

Ever met a female? They spend like $30 a meal at a restaurant and then they complain about that has they have no money n there poor. it's like only rich people can afford $30 meal

[@FilomenaDapaz]

i post same posts before here and I said (debt consolidation )but i made a mistake i meant a settlement agency . that is a big difference

[@pimpballer3]

She need to move out of California...

[@braineater7783]

pimpballer3 exactly lol

[@christiansma]

I haven't watched yet but I'm assuming make more money is the answer

[@luckymarbles9267]

I know right?

[@fireblade8905]

Nicole Barnes I work 2 jobs

[@christiansma]

Fire Blade890 cool

[@TheToadChild]

Nicole Barnes Seems to be the answer to a lot of life’s questions.

[@jkarica3319]

No, learn to manage your money is the answer.

[@AnnYT2]

Yeah it makes sense why she can't pay the bills, after daycare and house payment they only have 900 a month left. Still have to buy food, gas, utilities, car insurance. I'm unsure why that much is going out but they need to figure it out

[@LuigiFan1305]

This lady needs to live below her means... Get a cheaper apartment, quit the Starbucks, eat at home and a 2nd job.

[@zaidchalabi1599]

Cheaper apt in california ?

[@NoName-sp5dp]

Its Cali. Her man needs to stay home

[@mikeremington7063]

LuigiFan1305 I hate to say it, 1400 a month is extremely low where she lives. We live in the next town to hers and our rent in 1550 for a 1/1 apartment. And that’s the cheapest one in our city

[@KatieBellino]

I think Dave was more on saying she needs to look out the money they are having withheld from their checks. To make $70k and only see $40k of it is ridiculous. Divides out to $3333 a month ... $1400 apt (cheap in Cali), $1k childcare, $400 for medical insurance ... they only have $533 left for food, gas, and debts.

[@peartfaldo]

perfect example of...its not what you make...its what you spend....

[@slandgsmith]

We make about $70K a year (less than her) and we have about $35K in debt (way more than her) and we’ll have it paid off in 2 years. Oh, and my wife is a full time caregiver for my Mom who has Alzheimers. If we can do it, they can do it too.

[@utintellexi]

I needed this conversation. I need to catch up on my min. payments.

[@ErrorPagenotFound-ig1cy]

First thing she needed to do was to watch some previous episodes, the debt snowball technique has been brought up several times🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️ Second of all, $40k a year living in California is waaaay too low especially at San Bernardino

[@spankynater4242]

As they said in the video, she’s not even ready for the baby steps. She is still pre-baby steps.

[@Realg401]

Why when you follow the plan to live an affordable life people try to guilt you because they are drowning in unnecessary debt (like cable, streaming services, phone bills, ETC) like idk if I’m old school or what but if you can’t afford it cancel it and get your free time back to discover a new way of doing things that benefit you

[@gooney0]

They need a budget badly. They must be spending too much without realizing it. I've talked to plenty of people who think Starbucks, unlimited cell phone plans, and leased cars are normal. They don't know why they don't have any money even though they earn a good salary. When they get some money, they go out and buy a newer car. It's not wise to base your spending on what you "should" be able to afford, or what the neighbors can afford. Instead, do the math. (Starbucks every day is fine if you can afford it, and you're choosing to spend that amount of money each month.)

[@beegee4791]

Please do help me. What plan would you recommend for me to switch to? A reliable service

[@Currymastuh]

Every time I hear someone say they have debt to a medical bill, my stomach turns. I don't understand how more Americans aren't in favour of a single-payer healthcare system.

[@---cr8nw]

Why should healthcare expenses be based on salary rather than health? I'm perfectly healthy. My medical bills are low. I shouldn't have to chip in to pay for healthcare of people that have been smoking and drinking for 50 years. Similarly, my son, who has a genetic disorder (through no fault of his own), has high medical bills. Why should other people have to pay those bills? Because they make more money than we do? That's just a greedy way of looking at the world.

[@Currymastuh]

@@---cr8nw First, I'm not quite sure I understand how you can say a single payer healthcare system is "greedy" as compared to a private insurance system like there is in America. With respect to people sharing costs of healthcare via taxes - what it comes down to is, what does your society value as important? Does your society value having people be healthy? Does it value people not having to claim bankruptcy because they were ill? If the answer is yes, then a single payer system makes sense. Public education up to secondary school is free in America because you decided having educated people, regardless of their financial situation, is important to your society. Similarly, all other developed economies have the same view when it comes to healthcare.

[@jborrego2406]

@@---cr8nwyea until u get into a accident , house fire , get older then omg the medical bill

[@---cr8nw]

@@jborrego2406, yes, as I get older, my medical expenses will probably go up. So again I ask, why should my salary have anything to do with it?

[@user-vg6ym5xy2r]

Two adults are working full time and only making $70,000 gross!? What kind of lousy jobs do they have.

[@MichelLinschoten]

What do you make and what do you do ?

[@flowforever9084]

Many ppl make less

[@flowforever9084]

​@MichelLinschoten Frfr The nerve of ppl

[@symlexbrn5396]

When Dave tells you to eat rice and beans, then you know you're in serious debt

[@ShawnJonesHellion]

then daves family goes an genocides some *MORE* people an steals their land an resources so he can eat caviar.

[@minutemansmonitor]

She needs to get out of CA while she's at it.

[@enigmathegrayman2953]

Leave California if you can!

[@MostlyEnds]

There is no hope for this woman. She has a pile of money and can't figure out how to pay little bills. LOL

[@adammiller4595]

exactly lol. I would like to know what there doing with there money.

[@adrianb6942]

so true

[@Gunngirl]

That’s a lot of his callers. “I owe $40,000!!” What’s your take home pay? “$110,000l” 🙄

[@heidithaw1072]

She is paying a 1000 for child care Did he count that.

[@MrDigztheswagking]

😂😂😂

[@davidfoulk3078]

Truly amazing how some people aren’t even sure where their money goes or what and how much are taken out of their salary?? I mean really, I know exactly how much I make every month and where every dollar in my salary goes!

[@andrewf4623]

“Oh btw we spend $1k a month on daycare” ... 😧😮

[@TykoBrian7]

Children are a waste of money

[@NoName-sp5dp]

@@TykoBrian7 not if one parent stays home

[@TykoBrian7]

Kufre Akpan ???

[@mikejackson7881]

@@TykoBrian7 kids are expensive. Not a waste geeze loser...🙄

[@brysoncherry9884]

@@NoName-sp5dp Then they waste their income availability, and dwindle options in the workforce for when they return due to lack of recent experience.

[@jeep19]

Student loans, spouses, and kids are the super highway to debt...🤔

[@---cr8nw]

Spouses and kids don't add debt. Kids are expensive, but it only adds debt if you borrow money. And spouses make things cheaper. It costs the same for two people to live in a house as it does for one person to live in a house. But you get added income. Or, at the very least, free childcare.

[@jaquandrejones]

​@@---cr8nwI think he means your spouse CAN BE a highway to debt. Plenty of spouses aren't ideal partners and spend horribly. After you sign a marriage contract, you potentially have an idiot that can put debt on your plate. Kids just make shit harder. Congrats, little Billy comes with $150,000 in medical debt. 😊

[@---cr8nw]

@jaquandrejones , my son's healthcare has cost way more than that. Still cheaper to have two incomes and more expenses.

[@rositasierra5935]

Sometimes a person themselves can be their worst enemy. I think you have to be on the same page and sit down and work together at it and if you have kids yoh have to involve the whole family but still make it fun. It really makes your relationship stronger if you can talk about money, make a budget and plan together. 💕

[@bluluckyduckie]

-deliver pizza -night time custodian -Uber/ Lyft -DoorDash / grubhub -sell random shhh on eBay

[@Thrakerzog]

With (the ridiculous) California taxes taken out along with Federal, Social Security, Medicare and of course Obamacare, their take home income of 40k is pretty accurate on a 75k income. I lived in CA for 12 years.

[@Sophie-ge7ti]

How do you know they are on obamacare?

[@Musicienne-DAB1995]

Is that why people talk about flight from California to Texas?

[@burkles4456]

Obamacare isn’t an additional tax…. I see why you watch Dave Ramsey, he makes it easy for you to understand huh?

[@Thrakerzog]

@@burkles4456 My Obamacare fee was $700 per month in CA. Now please explain to me how that WASN'T a tax!

[@jborrego2406]

Why does he ask for the gross , most important is ur take home pay

[@mikepeterson764]

Their take home pay is roughly 3400, minus their rent of 1400, the 1000 for day care that's about 1000 dollars, food for 3 people, gas in the car. Car insurance, that's not a lot left.

[@oldtwinsna8347]

I'm surprised Dave didn't suggest to negotiate the medical bills. Pretty sure she could get a least a few thousand knocked off.

[@johnsmith-zx5er]

love how she just so casually mentions the $1000 per month for daycare

[@KatieBellino]

About as low as you'll get in Cali, I suspect.

[@---cr8nw]

She didn't just "casually" mention it. She pointed it out because clearly Dave missed that kids are expensive. I have one kid in daycare. It's our highest bill. Higher than our mortgage, higher than our health insurance. I can't wait until he's in public school. And I'm thankful that our kids are far enough apart in age that we didn't have to pay for both to be in daycare at the same time.

[@karenhardie1132]

Dave tells her I don't care daycare costs a grand a month. His wife stayed home. He doesn't realize what daycare costs.

[@---cr8nw]

Agreed. The husband only makes 20-25k per year. That means daycare is half his paycheck. Even aside from the numbers, that's a depressing situation, knowing that you can't afford to quit, but that your effective pay rate is about $5 per hour because you have to spend so much just to keep working.

[@spankynater4242]

I’m gonna go out on a limb and say once she told him it was $1000 a month, he knew how much it cost.

[@jborrego2406]

@@---cr8nwthey they choose to have a kid . Also my parents did on parent stay home as the other works . Then they come home take care me when the other leaves . Do even or night .

[@dks13827]

How about health insurance instead of big medical bills.

[@peartfaldo]

prob is. you can have insurance and STILL have big medical bills

[@spankynater4242]

Obviously, she has medical insurance, but there are such things as deductibles.

[@puppetmassster]

Do Dave's callers know when he has muted them?

[@TheToadChild]

puppetmassster I’m gonna go ahead and say no.

[@chiefzackery6651]

Quit paying minimum payments and go smallest to largest. Debtors don't help you if you ask, force them to wait.

[@vicmon9869]

The good thing is i love rice n beans.

[@ambientdave]

I work in retail here in the UK,had to take a part time job, 24 hr a week. As I have been (up to now ) as I been unsuccessful in finding full time work,so far (although had great interviews and positive feedback ) My game plan is to be debt and worry free ,in 3 years or less (if I can get a full time job) Have a budget is essential, does not matter if you earn a lot or very little.,you must budget. The way I see it,if you have no budget,its like being in the middle of great park,without a map,or sat nav,to get you to your destination.

[@rakashaagain]

Lol he is astonished by 30k after 70k income. USA is sooo cool. I pay 46% taxes. :(

[@cmac2295]

Her husband needs to be a stay at home parent or move his hours around his wife job. They can save at least $1000 a month. Their rent is very low and their debt is very low. I believe that there is a lot of careless spending going on.

[@HaviccB]

1400 is low rent?

[@goodgoy6287]

@@HaviccB in California yes.

[@KatieBellino]

No, they just don't have much income for their expenses. $40k coming home divides to $3333 a month. Take a $1400 rent, $1k childcare, and $400 for medical insurance. She now has $533 to work with for food, gas, utilities (at least a phone I would think), and their debt. The husband could almost stay home, but it will cost them another $12.5k out of their yearly income.

[@randyozaeta1026]

3333 a month... 1400 rent 1000 child care 400 for insurance 80 insurance 180 loan 273 a month for food, electricity, gas, transportation and creidt/medical debt dam

[@rodriguez9489]

The 400,180,80 shouldn't matter that is taken out beforehand, she said she makes 50k gross and they make 70k combined sounds like the husband needs to find a better job.

[@KatieBellino]

@@rodriguez9489 No, she said the $400 was something she was paying. The husband's came out of his check.

[@---cr8nw]

@@rodriguez9489, even so, 933 per month would be tight for food, electricity, gas, transportation, and debt servicing. Especially if they have car notes. Undoubtedly, they do.

[@Kish-wm8tu]

Dave can be wrong sometimes!!! I’m single my taxes went up. I make between 50-55k and bring home under 40 for the year

[@SuckerPunch92]

Lakisha Jones I’m so sorry.

[@heidithaw1072]

Mine too.

[@kj7653]

Same here.

[@spankynater4242]

He told her to change her W-4 form, and then her taxes would go down. How did some of you people make it to adulthood? SMH

[@SpecialEDy]

How can you not afford the minimums?

[@darienhubbard2207]

What do you mean? How can a person not afford it? Nevermind though. I just read your name on here

[@katarzyna9234]

@@darienhubbard2207 lol

[@psychowolf99]

Daycare babies are depressing. Debt is heartbreaking

[@nathandrake8320]

4:50 legend. Reminds me of my Dad

[@nemogage8392]

why would you pay off the little debt instead of highest interest? seems like a waste of money for extra motivation.

[@robertbrown7051]

My Gosh, $1,000 on day care? Where's the grand parents or retired family. I would've addressed that first!

[@bigmike11559]

Something here doesn't add up. They are not working full time. She says her pre-tax income is 50k. Minimum wage in California comes out to 32 k at 40hX50 weeks. This is just flat out not true. Taxes are only about 17% all in for that tax bracket in California. That means they should be bringing home $5,500 per month. That is without working overtime. Even after rent, utilities and the 1k/w childcare, they should have more than 2K left for expenses. 1) You should be able to carve out $600. Putting $500 of that towards your CC and you pay off 6k in a year (minus the interest, I know).. 2) Work some overtime for 6 months to pay off your bills. Making an extra 1k per month you are out of the debt in one year. Nothing about this call added up.

[@everyday.is.a.beautiful_day]

One thing Dave hasn't mentioned was the possibility in taking out a loan for 20k to pay off all the credit card debt and medical bills if there is any potential benefit in paying lower interest compared to her current interest expense. The loan would consolidate all her bills into one and potentially help her avoid late fees too...👍

[@slyfoxx2973]

All that really does is change the nature of the debt and not address the real problem. Their problem is they are not being smart and not working a plan and committing to changing their behavior.

[@everyday.is.a.beautiful_day]

Certainly like Dave said they are going to have to earn more income and take care of their debt to address the real problem. My point was a way they could save as much money as possible by paying less interest depending on their current rates and avoiding late fees because she can't cover some of her minimum payments. I know it's not a clear cut solution to their problem, just a strategy in knocking out the debt if they are able to qualify for a loan and earn additional income.

[@slyfoxx2973]

Dave would council thus: Along with what I said earlier...debt consolidation just doesn't really move the needle that much. They might save 1000 if they get a great deal. But many don't even get the math right and end up with lower monthly payments over a longer term. 1000 dollars isn't a real problem...20,000 is. Personal finance is 80% behavior and behavior modification.

[@oldtwinsna8347]

The problem is she's likely paying 28% interest on the credit cards. That's huge folks, HUGE.

[@rositasierra5935]

I was in a similar situation in the past but I was on my own and wasn't well but doctors didn't know what was wrong with me so it was very difficult to work but I managed to go from casual work to 1 day partime to 3 days partime permanent. To pay my bills I would rotate them week by week ie. Some I would pay the following week and arranged this with all of them over the phone I could only afford $20 a week on food. Sometimes I had no food for 1 or 2 days. My highest debt was my student loan and next one down was shared with my sister and she was a big spender but she left the country so the banks would ring me and yell at me every few days. Honestly it was the lowest of the low I have ever been in my life. But it really taught me to budget and I managed to move myself from a credit card of 29% interest to one of 13% interest. I had a benefit I was paying back $25 a week and when I met my husband I tried to hide my problems from him but he soon realised and offered to pay the $25 a week for me when he moved in with me. Thats when life improved for me. He had a huge debt too way bigger than mine but with no interest. I then was well enough to get a full time job and was attacking each debt with the snowball method and a few years later I was debt free including my student loan. It was the best feeling to cut up the 2 credit cards and I highly recommend the debt free charts every cent got thrown into my debts. I have stayed ever since with that budget mindset.

[@KnockoutInvesting]

Her net income is 53% of her gross income. Holy smokes that's a lot of deductions.

[@kj7653]

No. That is realistic. I always just plan on taking home half of what I earn. It has always been that way for me. Of course, I have always pulled out 401k and charitable contributions. But I just plan on living on half of what my income is.

[@Crystal-v9b]

Im in a 200,000 debt rn and wont make it Pray for me❤

[@randyproctor4313]

These people are clearly spending a ton of money they aren't mentioning.

[@MorineBarnes]

Congratulations on your autobiography download video "How Do I Pay Off Debt When I Can't Afford The Minimum Payments? inspirational thanks for sharing. Catalogue, Credit Card & Loan only. 💷

[@skubytube]

It’s apparent they are just blowing money left and right ! WTH

[@XxGreenBeXx]

Haven’t finished the video but here is my guess as to what Dave recommends: it is not an outcome problem, it is an income problem. Live on rice and beans and beans and rice only and get a better paying job. Do side jobs as well

[@ghiaferrari7585]

But too much beans increases the risk of arthritis.

[@skillfuldabest]

@@ghiaferrari7585 what? I think you mean too much meat increases your risk of arthritis. That’s why doctors recommend that people with arthritis to cut down on meat 🥩

[@lynnheffron6905]

​@@ghiaferrari7585 too much rice increases the risk of diabetes

[@TheToadChild]

I know it’s unconventional, but it sounds like the husband should look at staying at home.

[@johntucket9221]

Dave, I don't think her taxes actually went down in 2018 as much as you thought here...

[@michaelweyenberg6238]

Californians did benefit the most from the new tax plan.

[@bmaiceman]

I'm trying to pay my debt off. But it takes so long. I cannot pay on minimums on everything. Everything NOT GOING to rent utilities gas power etc goes to 1 bill forcwhich I was sued. Im half through with that bill now. Should be another 10 months. Then I'll move on to the next debt from there

[@franksiegle1821]

3 1 7 9 4 3 3 3 8 4 would help you

[@simplywine00]

In San Bernardino, her rent is too high...she can find something cheaper

[@KnockoutInvesting]

Two income 40k net. Jesus

[@MrISkater]

My families income, but we are not in debt.

[@bmaiceman]

So i dont make a lot of money. I dont mqke enough to oay minimums to everyone. So i pay my house bilks minus water sewer. I dont havw water fir 2 years. So whats left is food and 1 bill at a time. I make abt 18K a year and am very limited on what i can do phisically. So how do i do a debt snow ball??? I have med debt and some consumer debt.

[@TheMetalmachine467]

Move out from California The taxes are too dam high in liberal states And don't move to another state and keep voting the same way

[@azoreanprincesa8170]

VOTES DONT COUNT! ITS RIGGED!

[@bloodcountess81]

I feel like there's some missing information here. So between her and her husband, it's $75,000 before taxes, but take home pay is $40,000 because of a 401 k loan, so they take $90 out of her paycheck every week, which does not add up to $35,000. I seriously doubt she is paying $35,000 in taxes. It's just not adding up or she does not know how to manage money.

[@youtubeuser5102]

California may be expensive but its not the only problem. Money management is lacking in most people