I'm $110,000 In Credit Card Debt! Should I File For Bankruptcy?

[@darkgalaxy5548]

Never, ever buy a flipped house. All you're buying is a house with cheap shoddy repairs covered with a fresh coat of paint.

[@jasoncrandall73]

Inspections done by experienced experts. If you get any push back from the seller on any found issues. You walk away.

[@billjones4986]

Ya I got burned, everything was cheap,those 69.00 home Depot toilets don't flush well.After a couple flushes.oh well.

[@marcelhaik8035]

​@@jasoncrandall73 good answer - I hate scam artists.

[@marcelhaik8035]

​@@billjones4986 I agree.

[@Vulcan322]

Lol, OK housing expert on KZbin

[@VS-fo9py]

Dude, don’t give up before you have even started. Take Dave’s advice. Wishing you and your family strength in these next two years. Get after it! You can do it!

[@roberthuster1503]

Yeah man don't give up. You can do this. You have a bunch of people pulling for you and wishing you the best. I know I'm your fan. You had job loss, created a side hustle then at over 50 you get a higher paying job because your a winner.

[@Alex-ib4hy]

@@roberthuster1503 lol

[@CocoaPuff01]

This is horrible advice. The person is almost 60 years old and his advice is to work like a madman and put 70+ hours per week? And just pay 40k per year, disregarding his expenses?smh

[@laz7354]

@@CocoaPuff01 GOOD advice ...he has time.

[@curiouscat3384]

@@CocoaPuff01 GOOD advice - 52 is hardly decrepit! A couple years of hard work and he can retire comfortably.

[@huaninamillion]

What a stressful situation to be in... I commend you for taking the first and most difficult step: asking for help. It's not too late, you can turn it around! You can do it!

[@Chele-nm4qx]

Sometimes people just need to hear that they have options & that they have someone in their corner. I bet he got off that call & felt a weight off his shoulders. I hope he has this taken off his shoulders in a couple years & looks back & realizes what he actually accomplished.

[@paulc3749]

110k of cc debt is a millstone around the neck

[@raymondsimmons1617]

@@paulc3749 I agree. The interest on that is crippling.

[@curiouscat3384]

Yep, there's a tendency to become paralyzed by all the options a

[@maxvoronin273]

This show always makes me feel better about myself ! Thanks Dave

[@dinospumoni8860]

Sell the 500k house and use that to pay off the cc debt and move into the flip. Problem solved.

[@katiejon17]

But, but, but.... I want my cake and eat it too.

[@brucefredrickson9677]

Exactly...he should have way more equity than 200k in a 500k house he has been paying on for 18 years. Did he sign up for a 50 year mortgage?

[@golfguy1405]

it's wild to imagine selling a house because you maxed out credit cards

[@paulmccracken1038]

Glad you were able to give him advice and also the encouragement he needed.

[@NaNa-lt1po]

"I agree with dave", says ken as if disagreement is an option..🤣

[@larrybarbee4916]

😂😂 they all agree with Dave, all of the time

[@Overbuilt.Gaming]

Oh, for sure! How many times does Dave interrupt? Why does he even have a co-host if he's going to interrupt all the time and the other person sit there like a puppet?

[@terriesmith2616]

All of them agree with Dave. The only one who's not afraid to disagree with Dave is his daughter, Rachel.

[@larrybarbee4916]

@@terriesmith2616 true true

[@jeremieletellier807]

It will be a glorious day when Ken or George build up a spine and say « Dave, you are sooooo wrong about this. »

[@vickieclark5931]

It's crazy how some of these people call up scared and ready to file bankruptcy when all they have to do is get their spending under control and they'd be out of debt in a year. So many people aren't in financial trouble, they just have a spending problem.

[@victorvaldez760]

How can you be out of debt in 1 year when someone like me has a credit card debt of 120,000$

[@VicDamoneJr82]

That makes no sense

[@williamb.6813]

​@@victorvaldez760 Obviously every situation is different and won't be the exact same time frame. The point is the problem is YOU and your spending. People want to look for a way out without fixing the problem.

[@thefunfam1433]

@@victorvaldez760it’s impossible to be out in one year.

[@NyNjMafia]

Bankruptcy is not the worse thing if you kept up with your mortgage , I know plenty people that filed and kept their homes , they only had credit card debt.. if you took a 2nd mortgage then you are in trouble , that’s point you need to sell and get out of debt without filing but if you have both it’s better to file and sell and start from scratch, within 6 months credit card companies will start sending you applications for a credit with high interest, who cares? You need to start somewhere, just don’t over 20% of your available credit , you make 3 money monthly payments paid in full and you’ll see more credit card companies want your business and from there you build your credit.. you don’t need a college education , you need to understand how the industry works.. don’t believe what they say that you can’t get credit for 7 years, that’s BS .. within 3 to 4 months you’ll be receiving applications, you won’t be able to get a mortgage for 10 years but you will for a car loan.. yet again who can afford to purchase a home these days ?

[@Micloren]

He might be scared but he’s mostly exhausted & beat down with anxiety. If I were them I’d sell their primary house, pay off the debt immediately, find an apartment, & just cool off till I felt normal again. Attachment to stuff is how people get into these situations & his attachment to a wooden structure is keeping him from getting out. Classic… the things you own end up owning you.

[@robdebbilynnreed6339]

I agree with you! concentrate on there marriage for a little bit, especially if they have kids

[@rainy3527]

I wouldn’t get an apartment, I probably would buy a condo outright. I wouldn’t want monthly payments if it doesn’t work out

[@eugenegutierrez5106]

That’s what I do. I agree with u.

[@Mexicobeanpole]

💯💯

[@thefunfam1433]

Declare bankruptcy keep his house

[@OilBaron100]

The callers sounds like a very capable and hard working individual. I think he can fix his situation and keep his house.

[@AustinF516]

Remarkable how he is able to think straight.

[@tylersanders2388]

He isn’t thinking straight and hasn’t been for years. The fact that he racked up over 100k in bills with nothing to show for it means he was living it up on lobster and steak thinking he would be rich from house flipping

[@haywood4299]

You don't need a 500k house in MO. Time to downsize and start living within your means.

[@shannonobrien9922]

Ozarks is expensive

[@willfishing5605]

I'm a residential General Contractor, I see so many people think they're "house flippers" because they've watched a few episodes on HG TV. I gladly take their money. If flipping houses was a good business model, all of us contractors would be just doing that! We do everything at HALF the cost of consumers also, and it still doesn't work all the time. Sometimes it can be done, but overall, law of averages, it's not a profitable business model. It's like day trading stocks... only the brokerage is making money in the long haul

[@mph5896]

Yeah, its a REALLY tough investment. I did 3 flips. First, I took it apart and it was not worth putting it back together.Sold it and broke even. 2nd, down to the studs with 1/2 the house having the floor joists and repaired foundation and third was cosmetic. It certainly wasn't a windfall of $ made, but I enjoyed doing the work. Pretty much a hobby. I'll do another one, just have to find the right house. I cant imagine hiring alot of the work out and expecting to make $. I hired the framing and drywall out on the second. Roof on 3rd. Besides that, did everything else myself.

[@steffilynn0917]

At 52, he better be sure his and his wife’s health can sustain working 65+ hours a week for the next several years before he chooses that option. Money’s no good if they push themselves until they have a heart attack or stroke, and they sound like they’ve already been heading in that direction for a while with these flips and the crazy stress that goes with them. Caller, sell your primary residence and prioritize your health and relationship! You have a window of time where you have enough income and enough time until retirement you could still purchase a more modest home, but if you wreck your health or your marriage, you can’t get that back.

[@WeBeatMedicare6969]

At one point do you say to yourself maybe I couldn’t keep charging things?

[@HassanThelander]

We all go too far in some aspects, we have to be grateful when we don’t take it to the point of having to climb a mountain

[@kstar1956]

The CC debt was probably racked up when he lost his job so I can totally see how that happens if they are living off of the CC. Although I'm curious as to why so much especially if the wife was still working , they should have just did some major cut backs.

[@Ryan_DeWitt]

Sounds to me like he got a 50k paycut, but was living the exact same lifestyle he was with the extra 50k.

[@reese85]

@@Ryan_DeWittkinda hard to adjust to a pay cut like that and not be in the hole

[@kara2162]

This Is why you don't go into debt in your 30's-40's. You will be in your 50's working 75 hrs a week when you could be cutting back. No fun.

[@taylormabanag2535]

Totally agree!

[@OTOWN2STOCKTOWN]

Yup

[@patty109109]

Sometimes life doesn’t quite work the way it says it will in a book.

[@traveler320ak7]

Yep. If a person lives within their means when they are young..and save like crazy..they can have a nice retirement.

[@sew_gal7340]

@@traveler320ak7 Thats what i am doing, no debt...30 years old...make good money, have a house living VERY frugally...saving a ton every month...the problem is seeing your savings and being tempted to buy a ton of things or just pay off the house completely

[@getinthespace7715]

I've paid off $110k in debt over the last few years. $35k of that was medical related to keep my father in law alive got $30k left and we will be debt free. Just keep at it. Be intentional with your money.

[@Illmatic25]

How did you do it? What sort of work are you if I may ask?

[@leadnsteel1428]

Everyone wants to be a real estate investor/flipper these days

[@1jw298]

It’s been that way since the 90’s. Remember the Carlton sheets commercials?

[@robloxvids2233]

If it was so easy professional contractors would be doing it. Not regular "entrepreneurs."

[@jimmymcgill6778]

That's because he didn't know about it before he first started. If you flip house, that have to be your main job, not a second one.

[@djpuplex]

Too much HGTV on in the house.

[@alinatamashevich3354]

Jimmy, who said that? More of your bs

[@ClaytonBigsby89]

" I purchased a $5 scratch off and only won a dollar" Dave: "Sell the house, rice n beans"

[@curiouscat3384]

This is such a simple little joke but I am ROARING with laughter :)

[@miketracy9256]

If you want to be a safe flipper, do what Dave advises for rental homes, pay cash and have the funds to rehab in the bank.

[@dennisd4027]

House flippers...this is how every story ends unless you get lucky and time it right.

[@kaisersouze41]

He’s not the first person to lose money in a failed business. That’s very unfortunate but he’s already made his decision. After this call he googled Bankruptcy attorney. He didn’t get to this point overnight. At $20K, $30K, $50K he knew he was in over his head. I’m sure he already had looked into bankruptcy back then.

[@curiouscat3384]

Yes because he knew the Missouri homestead amount for bankruptcy

[@dinospumoni8860]

I got 7k of cc debt and make more than him a year and I am freaked out about it. I don’t know how this guy is staying so calm.

[@wewhoareabouttodiesaluteyo9303]

I have $4200 currently. Good thing they had an APR promotion of 0.90% for less than a year.

[@treasurethetime2463]

He has the money. He has 200k in his house. He is looking for a way not to pay the 100 grand.

[@dinospumoni8860]

@@treasurethetime2463 probably. That was my suggestion in another comment.

[@michaelhunsinger8351]

"SELL THE BOAT!" -Dave

[@Elizabeth-yg2mg]

He sounds scared and depressed though.

[@shumatsuopost]

Love Dave's advice on this one as always!

[@peraltaisrael2598]

Why do people think they should be able to just walk away from their debt? Especially when they have a way to pay it off.

[@Weakeyedominant]

He knows he isn't walking away from it that's why he is so depressed. If he sells the flip house he can get his debt down to 80k, that's manageable on his current household income. It sounds like he has no pension savings though which is a bigger problem down the road.

[@andidede3653]

Even if he wanted to go with bankruptcy, making 115K a year, his assets being level with his debts or slightly more equity might not clear his CC debt. If anything they would restructure it and he still pays that money. Courts don't care if he takes 20 years to pay it as long as he can

[@riggitydoo5116]

It's called the law. And it exists for a reason. If you don't like it fight to change it.

[@genxx2724]

@@andidede3653 Bankruptcy payment plans don’t go out 20 years.

[@andidede3653]

@GenX X i know I was just giving an example

[@chuckdameron5626]

I say sell your house and move in to the flip house all your bills be paid and you can save money and buy a big house later

[@bettysmith4527]

I was thinking this too! He didn't mention having kids, so maybe it's an option!

[@AmandaHugenkiss2915]

Decades ago a friend and I were looking into flipping houses. The only prayer you have of making money is to buy the house on the courthouse steps. The absolute dumps we were looking at with a Realtor were too close to market value. After fixing it up I figured we'd be making maybe minimum wage if we didn't lose money. Not worth the risk or the hassle. I'd have been better off with a McJob.

[@mph5896]

Even the court house step houses are tight. Gotta hire the lawyer for eviction and to clear the title. Then you really don't know what you get until you get possession.

[@kellywaddell4448]

You can’t afford a $500k house with $115k income

[@hvaball150]

he owes 300. he was earning 165. sounds ok.

[@kellywaddell4448]

@@hvaball150 he’s broke. Not ok

[@AmandaHugenkiss2915]

The price of your house should be about 3x of your gross income, max.

[@phattonez]

The situation is what it is. He has 200k in equity and ought to leverage that to pay down the credit cards. Dave won't mention it but it's a way better option than keeping the credit card debt outstanding and slowly paying that off.

[@joepic85]

They didn't pay $500,000

[@expat8873]

$500k house that they have owned for 18 years and still owe $300k on translates to lots of cash out refi’s to cash flow a lifestyle they couldn’t afford I guarantee they only paid $250-300k for the house 18years ago

[@dissatisfiedcustomer6423]

If you listen to him it is a house he and his wife built not bought they built it.

[@genxretiree]

Been there and dug out of it (twice) without BK. You can 100 percent do this.

[@sabrinaboston9289]

How did you get out of it??

[@aguyandhiscomputer]

Once Dave gets going, the co-host might as well get up and take a break. He and Kelly Clarkson should do a talk show together.

[@curiouscat3384]

That's okay. It IS the Ramsey show and his protege's are never quite as skilled as Dave.

[@StevenAbbott]

I am a master tradesman all trades. I never flipped a house that I was not living in. I always thought it was financially dangerous.

[@RaleighLink]

Don't be so attached to your house, this man could be debt free with cash in the bank by selling the two homes and paying his debt off. Then go buy a smaller house with the cash you made, problem solved.

[@harisadu8998]

I would also try to negotiate the debt as much as possible. See how much of a reduction he can get. If he offers to pay up.

[@BrandonM.N]

I have $230 on my AMEX and I’m freaking out….feel so much better now 😅

[@katiejon17]

Hahaaaaa! I can relate! We paid off all of our non-mortgage debt a year ago, but we still have like $55k on our mortgage.... and I flip out over that!

[@so.many.obstacles]

If you have $230 on a card and haven’t paid it off you should be freaking out.

[@TopVillain]

The homestead exemption is 300-600k in California. If it’s your primary residence.

[@dianecelento4974]

He could do a chapter 13 bankruptcy and keep his house if he has too much equity.

[@curiouscat3384]

In North Carolina the homestead exemption is $35 K unless you're over 65 !

[@kstar1956]

These folks don't need to file bankruptcy. They need to hurry up and sell the house they're flipping and then buckle down hard and tight and pick up whatever side jobs they can to pay off their debt. They can do it, they make $115k a year, they just need to be disciplined.

[@bishwasmishra6447]

If they could be disciplined they wouldn’t end up where they are. But hope they do.

[@workhard7306]

Turbo debt all I have to say

[@nigelstanford4]

$115k/year for two people is not enough money. Especially when you're an older couple.

[@MarksTournaments]

@@nigelstanford4 exactly

[@exgamer07]

@@nigelstanford4 what? 😮 $115k is plenty of money unless you live in downtown LA

[@Matt-ur3dm]

Why doesn't Dave suggest he move into the house he is currently renovating and sell the house he has equity on and clear the debt completely?

[@robdebbilynnreed6339]

good point. nice 3rd option!

[@TheDeathvice187]

Cause he only ever lays out a max a 1 option

[@donjohnson1416]

@@TheDeathvice187 Tell us you barely listen without telling us.

[@Satiusmaximus]

That’s what I was thinking!

[@leemp337]

The caller subtly hinted he wants to keep 1st house as he mentioned he built it and has blood, sweat equity in it. He is emotionally tied to it and he is trying to find way to keep it. In the end, he may still be forced to sell if there is no homestead exemption on it.

[@BKDDY]

If you can't make CC payments you can call up the CC companies and bargain with them. They can lower your monthly payment & even cut out a lot of your debt you owe them.

[@amireallythatgrumpy6508]

They can but they won't.

[@robertthompson5908]

I think he said they just did that.

[@alexarihani2902]

Why should they? Just penalizes the people who pay on time

[@aboutwhat1930]

@@alexarihani2902 Not really, you're already paying 10%+ APR on unsecured debt because of the risk, so they're doing what they can to make sure they get paid back without sending it a collection agency or lawsuit, both of which will probably cost more than the discount on the accrued interest as the debts will be sold with a sizeable discount.

[@AnthonyDonkor]

Actually what you do is pay the first payments on the CC and then after 2-3 months ask them to reduce and pay the rest of debt off.

[@jvarsall]

Sell the flip house, take the profits straight to Vegas and put it all on black!

[@marknewton6984]

Go for it!

[@rethinkcps2116]

Caller's ego refuses to admit that house flipping was a wash - or outright losing deal. Esp. if he puts numeric value on "sweat equity." Why call DR just to (very passively) argue with him? His mind won't change...and he's right.

[@ForceFreddy]

He could sell his house, pay off his debt and use the remaining 100k as a down payment on a new house that her family could live comfortable in.

[@IvyPlans]

They make 115k+ between the both of them. They can live on half and pay their debt in two years. If they sell the house faster. Fear will stunt your ability to see things clearly.

[@bovnycccoperalover3579]

It's hard to predict without all the data.

[@choicemeatrandy6572]

Sell everything so hard that the kids think they're next.

[@lez2884]

Him and his wife can work extra to payoff the debt. If they can clear an extra $500 a week that is $26k a year and rest out of salary. No reason for him to shoulder all the extra work, he sounds exhausted or depressed.

[@johndone8045]

Sell the flipping house Dont think bankruptcy can force selling of the primary house regardless of equity Isnt theres the primary residence rule?

[@michaelp9707]

Situation is not as bad as it sounds.Debt divided is only 55k each between Husband/Wife they have good income as well,plus they have property.They just need to cut back a few years.

[@yesIknow277]

Said they have 200k to gain on the primary home and about 40k to gain on the flip. Sell both houses and put 100% down on another one immediately that is a fixer upper because at that point you are debt free with a paid for home and 115k yearly income.

[@dianecelento4974]

Makes sense since he flips houses. He can flip his own.

[@TheVasMan]

Dave's math always works as long as you forget that taxes exist.

[@TheJohnmmullin]

Yeah I cannot understand his math

[@spankynater4242]

I’m not sure why everyone always assumes Dave doesn’t know about taxes. Always tell yourself, if you’re aware of it, Dave probably is also. Even after taxes, they can still get it done in two or three years.

[@AmandaHugenkiss2915]

While I do think it would be better to talk take home pay, it's understandable that he talks gross income. Everyone has different taxes, insurance etc, you can go down the hole and never get out. He's trying to keep it simple and quick for a radio show

[@XennialGuy]

I'm confused as well. I don't think this was good advice in this case.

[@SnifferSock]

30% of 115k is still 80k. 40k into debt, 40k to live on is entirely doable for almost anywhere in the US.

[@Dmoney617Bost]

In Massachusetts, if you have a homestead, we are covered up to $500k in equity. If no homestead, equity is covered up to $190k. Varies wildly by state. Sometimes, bankruptcy is the best option for some.

[@taniagarrison6216]

He seemed reluctant on the side hustle idea 🤦‍♀️

[@juliobasloco4927]

Interesting showing an Eastern Motors commercial before a Dave Ramsey video lol

[@makdaddy8399]

Answer. Yes.

[@morganottlii2390]

I would pay someone who has experience 3X my hourly pay to do repairs on my house that I don't have time to do. 25 hours a week for a few weeks would be great for me. He should look into that kinda side hustle. I'm not the only one

[@curiouscat3384]

There is HUGE demand for a skilled person to do small jobs. HUGE! But he seemed reluctant when Dave suggested that. I think he was starting to say something about his job but Dave talked over him as usual. But I agree this guy can't just file bankruptcy and rest on his laurels.

[@screwdriver_bandit]

Great to hear Ken’s input.

[@darrenscott3544]

🤣

[@FunesLegend]

At first I heard "couch flipping business" 🤣🤣

[@runningdebate2670]

Jeff if you're reading this, you can do it!

[@bigcahuna42366]

I wouldn't feel confident flipping houses in today's market unless I get the house for a dirt cheap price (which is really hard). Currently the vast majority of home prices in America are inflated, and what goes up, not all but in a lot of cases eventually come down.

[@adamseidel9780]

This guy has a worse problem than Dave acknowledges: he’s also stacking up about 25k a year in interest. If he can’t find a way to shift the debt into something with no interest for 18 months, or a more reasonable rate, getting out of the House is the only reasonable way out

[@TheVasMan]

Bingo. Then you throw the taxes onto that $115K income and the $300K mortgage and coming up with 40K a year to throw at the debt each year is going to be tough.

[@Mchris24]

Agree. Dave always seems to forget about interest and taxes when he calculates how fast people can pay off debt.

[@thefunfam1433]

Which is why he should declare bankruptcy

[@KennTollens]

What is the logic to keep the house? Seems like he could sell everything, have money in the end and he gets a decent paycheck.

[@choicemeatrandy6572]

Sentimental value?

[@cluggyahoo]

@@choicemeatrandy6572 like keeping the wife?

[@robloxvids2233]

Ego

[@kingduckford]

Some things are worth more than money. If that is the house he wants to live in and cherishes it, it is more than just a baseless asset with a cash value attached. Maybe the suffering and other ways to pay off the debt is worth it to keep the house he wants.

[@briankinslow2995]

Hi, from uk, Great show and advice . Much of which helps here

[@zunaiandre2341]

Wellle!!!!he better off than my dad with $70k student loan hanging @64yrs🤦

[@leadrecruiter]

what 64? Did he complete a degree in Sociology?

[@SVSky]

That is nuts.

[@zunaiandre2341]

The group that was once convinced that SL is forgiven along the way🤦🤦

[@thomasfranco5997]

I have a neighbor who bought a house across the street last year for $1.4 million. It has the same floor plan as mine. They have been having problems since they moved in. Even before they moved in, they waited 2 months to get the house done. New roof, new paint and repaving the pool. Now they are having problems with pipes in all three bathrooms. The house is forty years old. I think they were better off buying a new house for that much money.

[@countdown2xstacy]

Poor guy is on the verge of tears.

[@queen.kristal8395]

I mean if I was the judge I will make them sell the house to pay off the creditors no reason to have half a million house when your broke.

[@kcor4]

Hard for me to feel bad for people who flipped houses and ran prices up on everyone.

[@OUTDOORS55]

Lol thats not how it works😂

[@wewhoareabouttodiesaluteyo9303]

Yeah, kind of karma for him.

[@sneakerfreak2002]

No sympathy here

[@sglacf]

If he was running up prices by flipping houses then he wouldn't be in this much debt

[@michaelp9707]

It is the massive money printing and bad monetary policy running prices up

[@dahbajanman7044]

I would sell both houses then pay off the cc and buy another house.

[@Eastahtata]

Yep he's probably got a 25%APR on that 110k. Ouch. Gotta ditch that burden first.

[@ThreeorMore209]

These people wanted to live RICH. This is what arrogance will get you.

[@angel-ij4xv]

exactly everyone can't live that luxury lifestyle

[@michaelb.8953]

I'd move into the flip and sell my house that I'm currently living in to increase my cash flow as the flip is significantly cheaper.

[@eljefe4473]

Yes sir

[@DeepDeepSpace]

I imagine the flip is in a bad neighborhood which is why it's cheaper.

[@michaelb.8953]

@@DeepDeepSpace Okay. It's just one of the sacrifices one has to make for a quicker cleaner debt payoff.

[@jejekelley8204]

@@michaelb.8953 my safety wouldn’t be worth it.. but if it’s in a safe neighborhood I would definitely make that sacrifice…

[@abark]

A flip is usually on a short term like a balloon or bridge loan, hard money at double digits for 90 days etc. He's had it for a while it sounds, so who knows but generally he would need to pay off the note on an investment property relatively quickly. Unless they paid cash, but I doubt it.

[@elainenilsson5472]

That was a good one. This was a real problem with a real solution.

[@budgetingdaddyuk6761]

Love Dave's advice.

[@mikeshaw4610]

It was never asked if he even wants to keep his house. Maybe downsizing is an ok option with him.

[@Presidentialrun2028]

I think people NEED to live way below their means. No matter what you make a year. You make 100k a year live on 30.

[@danclapper626]

Ha, I pay 30k in taxes.

[@reese85]

30k really? Smh

[@danclapper626]

@@reese85 yes really

[@curiouscat3384]

@@danclapper626 All the more reason to live on 30 and DON't USe CREDIT!

[@Gamma_Labs]

Best of luck Jeff!

[@jgregg7100]

Anyone else listen to Dave to feel better about your financial choices? 😂

[@coppingtonfarnham7731]

They are in better shape than others I've heard of. Need to sell the flip, sell and downsize from the house they're living in, then pay debts. Won't be able to live in a half-million dollar house for now.

[@Hugo-py2ce]

How can someone get themselves in this situation? This is insane!!!!

[@kr7584]

Dave's advice here is 100% spot on. Save the house which you live in and pay mortgage for. Do whatever you can ( even late payments to creditors is fine ) and work like a maniac.

[@PInk77W1]

I’ve never made a late payment But don’t they charge u a large late fee? Three years is 36 late payments. $50 a pop is $2000 more

[@GuitarGuy650]

Except when you take into account taxes and interest in the debt...sure, killer advice! 😂

[@marnarenteria4203]

Why would he have to pay anything late if he's current now? Why not just stay current and let the proceeds from the flipped house give him a head start?

[@Travis21G]

Cash out refinance, consolidate the debt, save all that monthly , put towards loan and pay off.

[@mikeparker6322]

“Sweat Equity” only has value to to the person who actually perspired.

[@torres7545p]

There's a different between making money and working...you can make money without working...

[@dmbgator86]

Ken is dying his hair. Chill dude 😂

[@gooserich3970]

I bet he is looking at his wife on the other end of the phone like I "you did this to us"!

[@nancybashista1390]

Great advice. 🙏

[@byteme368]

If you pay late, then you have to pay a buttload in fees... why would he advise that?

[@curiouscat3384]

as an option to bankruptcy - either way his credit is shot.

[@sdguy67]

I know it's not inline with the Ramsey way, but take out a HELOC to pay off the Credit cards. The HELOC is going to be much lower interest rate than the credit cards

[@billjones4986]

This channel is hard to watch sometimes people make bad choices especially when young,guess I was lucky my father was a CFP.But seems common sense is rare when it comes to money.

[@DanielGarcia-zz9eg]

Sell the your house. Save on home insurance, property taxes , maintenance and move in a small apartment or family. Start over

[@bovnycccoperalover3579]

We are now in the bad time before the Post WW2 Living with family may become much more prevalent

[@theunit5939]

Good lord and I'm having major anxiety with 600$ after Christmas buying

[@curiouscat3384]

You should be! Why spend that much on Christmas? It's insane and is a perfect example of how weak all Americans are being influenced by advertising or the kids being jealous of friends' toys.

[@Albert12893]

Brilliant advice

[@theparrotchannel2625]

The paying off that thing is a good thing to do but in his case bankrupt Dave didn't even use his fancy plan he went bankrupt as well sometimes you just get into deep the key is never to get that deep in debt in the 1st place

[@ginger6582]

You didn't mention that Ramsey had his bankruptcy reversed and he did end up paying it off.

[@hectorkjv_1611]

Dave says "CRAP" with such vehement emphasis. 😅

[@kevinkidneyy]

I have a capital one debt card . Every month just transfer money in that account that’s all I get to spend for the month .get to save and have a budget

[@roolyfe]

😢I feel for this guy! I am in the same boat 🚣‍♂️!

[@DM-ed9os]

Why not do a cash out refi on the house, pay off the cards, then put all of the payments he was once making on the cards toward additional principle payments each month to get the mortgage paid down faster?

[@AB-jz9ns]

He should put emotions aside, sell their house and payoff all debts from that equity. Keep the flipper house in the meantime and live in it for a couple of years until ready to buy a new house. Use as down payment all the leftover equity from both houses. Problem solved.

[@marie3161]

This is mind boggling. Who is dishing out credit like this.

[@usptact]

Why not to sell the house and move into the house being renovated or rent for a while? Yeah it’s hard but you set yourself free from the debt.

[@AB-jz9ns]

That's what I would do. This way he would get rid of the debt immediately, avoid tens of thousands in interest charges, probably pay less local taxes, fix up the flipped house to a better state and sell in a year or two. Then go buy another house putting down all equity left.

[@rodrigofernandez9055]

Why does he need a half million house that pays a ton of property taxes?... Downsize and pay off your CC debt.