"We Can't Afford Our House Anymore!"

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[@TheFinanceZone]

It's gonna be so difficult to ever buy another house with a $1,700 per month payment. Keep the house and sell the cars, take the gift and apply for another job!

[@Chaezaa]

Don't take the 10k gift from the family. It will boomerang back in the future. They will ask for some favors in the future and pull the "remember, we gave you 10k" card.

[@cathy7824]

Its tge taxes and insurance that's killing them. If she sells the house they'll have $130 to put down on a new house in a more affordable tax based area

[@WeBeatMedicare6969]

@@cathy7824 lol yeah ok

[@blackworldtraveler3711]

@@Chaezaa Yup. It's just a temporary financial band aid anyway.

[@SicSemperTyrannisx9]

Agreed. With cheap cars and no car payment you won’t need comprehensive converge. No car payments + less expensive insurance + a part time job changes the math dramatically.

[@stevengtv]

Don’t sell the house! Sell the 16k car, take the gift pay off the other car, get a side job, rent out a room, don’t buy anything. Keep the house! You will easily get thru this if you make the house a priority over anything else.

[@jimroscovius]

Sell both, like they said. They can rent while they look for more or better jobs. Once they have them, they can start saving towards a new house. That's what we did, and it works.

[@chaselesser3191]

If they can bump up their income to $65k. They might be ok. $80k would be more ideal. If they can’t do that they can’t afford that house. It’s 43% of their take home pay.

[@vickieclark5931]

No, they do need to sell the house because even if they had no other debt, they are house poor. The mortgage is almost half of their take home, which is way more than it should be. Unless they get better jobs or work more, they will always feel like they are drowning until they get rid of the house.

[@unfairsanic5089]

Sounds like a bad plan, they are alrrady stressed out keeping the house. Its a burden. Sell it and rent until they are financially ready to buy a house

[@stevengtv]

@@unfairsanic5089 even if it means renting for more? Good luck renting for less than what they are paying. They have an income problem.

[@TheFinanceZone]

What if they sell the $16k car, take the $10k gift and pay off the second car and get a second job? At that point they'd be able to afford their house payment. I feel like there are more options than selling their home.

[@blackworldtraveler3711]

There are options but I would avoid that $10k gift.

[@JamandiPoovu]

It's difficult to get hold of houses now a days.

[@JohnMartinkant]

Their house payment is almost 50% of their take home pay,definitely sell the house

[@Feelsbad1]

That $10k "gift" isn't a gift. A year passes and mom and dad want their $10k back. Or mom and dad give them the $10k gift with the expectation of this couple to take care of them in their old age. Which will put a huge strain on them financially later.

[@slimdude2011]

@@Feelsbad1 The caller said the $10,000.00 was a gift. She didn't say it was loan, and that it needed to be paid back.

[@goofygirl1311]

We need Dave and Rachel to look at the rents in Orlando, FL and tell this young couple where they are supposed to rent and also what less expensive vehicles they can get to replace their current vehicles with. The problem is that houses and cars have gotten crazy expensive.

[@donaldlyons17]

Well they might have an income issue I totally agree with you on this!!

[@donaldlyons17]

@@Rider-hh9it With that there will always (unless the land is bought) be lot rent to pay!!! Most of the lots around me are owned by landlords who rent the land to trailer owners / renters.

[@psychedelicybin]

They need more income or to live out of their cars! The math isn’t mathing

[@donaldlyons17]

@@psychedelicybin They can't live out their cars for very long. I know because the people I used to live with were leaching off me to survive. When math does not add u the only way to make up the difference is to not pay or pay only a fraction of the total price. And that is exactly what they did. But with the court system that tends to not work.... "lawsuit(s)"

[@kathya1956]

I feel they live in an alternate reality.

[@mominthe209]

If you MUST stay in Orlando, don’t sell the house. I though she said she was a nurse. Take the weekend shift, pack a lunch, and you’re fine. Rent would be outrageous and you walk away with nothing like leasing a car. More income will fix this problem.

[@Feelsbad1]

I'm 99% sure she did not say she was a nurse. If she was, their monthly income would be way higher than $3,900. That $3,900 would be close to her income alone. Yes, it is usually an income problem. They are bringing home about $60k total combined. To another commenter's point, that's like trailer park income in Orlando. Either they both need new jobs or the one that isn't working, needs to find a job. They can live in a 2bd/2bth for like $1.5k rent in Orlando. Go look at Zillow.

[@adamseidel9780]

She did not say she was a nurse and their income isn’t good

[@Gottaknow]

If they got rid of that car payment they wouldn't need to sell the house!

[@Mike072385]

If you can't afford a 1700 mortgage in 2023 you should probably just get a box to live in.

[@HairyTornado]

Yes, get rid of the $1700 mortgage so you can rent for $2700 😂

[@sweatchivanswett7995]

LMFAOROTFLSM 🤣

[@AimeePoppinBabies]

*cringe* yes it could actually be that case. Best case is to move into a condo (that they purchase) or town depending on the amount. Keep a home if you can because rent will kill you! It was a fight for us to get away from renting.

[@AimeePoppinBabies]

@@minimalist_monk we owned a condo for 5 years and never had an issue. The only thing we paid was maintenance fees and the mortgage. Not sure what you mean by assessment but if there was an issue with anything the building took care of it.

[@AimeePoppinBabies]

@@minimalist_monk the problem with renting for life is you never build any equity though. My father is 70 and every year a bit more of his pension goes towards rent. Eventually he will have to move further and further from the city with nothing to show for it. Our mortgage will be paid off soon and my husbands pension will be hefty at that point so we will just be banking the cash. Our house is relatively new so it would only be the occasional update and taxes which obviously no one gets away with. That for us makes the difference so we do more of a Dave Ramsey lifestyle and it feels safer for us. We of course keep an emergency fund too. I couldnt imagine the stress of renting because there is no security in my opinion.

[@goofygirl1311]

Rent goes up every year, too. At least with a mortgage your payment stays constant over the years and you also have the benefit of equity and appreciation. I wouldn't sell their house. Their mortgage is not the issue.

[@akbarbukhari]

Selling the house is bad idea , $1700 is very good for a mortgage if it’s escrowed.

[@tarawhite4419]

I have the feeling there's gonna be a lot more of this in the not too distant future

[@caezar044]

Yep, a friend of mine had the property tax on their home quadruple this year because it was a flip, compounded by generally higher home prices in the last two years. Commercial property values are down so cities are reassessing residential properties higher to make up the gap. My friend’s student loans are restarting this month as well so the issue is about to get worse.

[@barnabusdoyle4930]

@@caezar044Most of the time states have laws that limit how much a property assessment can increase your taxes by. However, if the property has an appraisal done on it, the county will go by that new valuation. Thus if you just bought a house, refinanced or got a HELOC, you could see a big jump in property taxes from that. Guess what alot of people are doing right not to consolidate debt.

[@edd06001]

Yup Ramsey is living under a rock. He sits here and says that home prices will never go down and that it's everyone's fault they can't find a house they can afford. But the reality is that this latest housing boom has made nearly every home unaffordable particularly when you follow Ramseys 15 year 25 percent rule. A housing crash seems all but imminent.

[@joshwolfe1449]

Especially after these student loan payments start back up

[@caezar044]

@@edd06001 I did the math and if home prices come down just 5%, and mortgage rates go down to 4.5%, home affordability will normalize. 4.5% mortgage rates are plausible in the next 2 years so I don’t think a big housing value crash is needed for things to normalize.

[@glennz6686]

It's going to be hard for them to find an apartment for less than $1,700 a month

[@joypeaceandhappiness1501]

2 bedroom 2 bath in Dallas are 2500. My neighborhood has houses renting for about the same. My mortgage for a 3 bedroom is 1k less. It's best to keep the house

[@amatthew3t259]

Under rated comment

[@BrunoZ9x6]

Well above 1700 in Florida

[@lulu-dr4eh]

I think they’d be better off selling the car at least, and instead of selling the house they should increase their income.

[@purplecloud2828]

Selling the house is stupid.Get a boarder,a student.Get rid of a car.Rice,beans,pasta,cheap chicken etc.

[@kimferzoco6755]

The better questions are “what would your rent payment be if you sold?”, “how can we increase your household income?” “What’s the interest rate on your home?”, and “can you make the house payment if you cut out other excess?” , “can you get a second job?” $3900 take home for 2 people is probably about $15/hr first each person. Idk what it’s like in Orlando, but I see signs for part time jobs with no experience offering over $20 per hour. I saw one sign offering $20 to $23 per hour for someone to scoop ice cream.

[@rodneyperry7940]

The problem is that those costs you experience as a homeowner will be passed onto the renters. Do what you can to stay in the house.

[@nicokl5593]

Yeah I agree with you. Rent is crazy high right now.

[@_m_K_.]

Thank you! Rent increasing, interest rates will stay high. Get rid of cars.

[@nyneegardner6235]

Florida has become super expensive. They have the highest inflation in the nation, and the cost of their HOA's and property/flood insurance is insane now. Their mortgage is almost half of their take-home pay. This is not sustainable. If their jobs aren't portable, they should consider trying to keep their home and increasing their income.They need to get rid of the more expensive car, but hold on to their home unless they want to leave Florida altogether. Depending on the fields they work in, maybe they could relocate to a cheaper state. They could consider taking in a roommate, or even renting out their home and downsizing to an apartment for a while until they can get caught up on bills. But based on other vloggers who I have seen who live in Florida, they may not be able to find cheaper rent than their mortgage right now. And it's more complicated if they have children. Downsizing to, for example, a one bedroom apartment may not be tenable.

[@velayuthman]

My husband and I, both in our 30s, married 4 years, 2 kids, only make 55K a year combined together. Only debt is the mortgage. We wish we made 200K a year. I'd like to see these people live on what we do. what could I do with our income to bring in more revenue?

[@kansasmile]

Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.

[@blaquopaque]

Money advice is subjective, what works for you may not work for me, but it's always better to plan. I'm quite lucky exposed to personal finance at an early age, started job 19, bought first home 28, got laid-off work 36 amid covid-outbreak, and at once I consulted an advisor to handle growing my finance. As of today, I'm only 25% short of my $1m goal after subsequent investments.

[@blaquopaque]

Yes inedeed, i have ''Monica Selena Park'' and she deserves credit as one of the finest financial planners who decides what assets i acquire whilst skillfully diversifying my portfolio. Her reputation precedes her, and I highly recommend her on a public post, you can look her up to locate her online if you are internet-savvy

[@jimroscovius]

​@Shultz4334 Scammers!!

[@Iburn247]

I'm paying my mortgage off Jan 1st and I cannot wait! Bought for 205k 8 years ago, worth 455k and I'm PUMPED

[@nopenope6012]

Wow, they are about to destroy this family's life, and they smile while doing it... what are they supposed to do after they sell the house? Pay even more for rent? You have to ask more follow-up questions. It is $3,900 take-home after taxes. If so, then they can more than afford that house over renting. What is the payment on those cars, and what are the interest rates? Where is the rest of their $2,200 going? Pick up a second job for a while, at the very least, until the cars are paid off. Make some sacrifices, and don't tell them to destroy their future for a bit of comfort today. Heck, God even dropped them a supply basket of 10k!!!!! You got everything but the writing on the wall here, and you still missed it.

[@fornos123]

Same thing I was thinking. She obviously hasn’t seen rent prices in Florida

[@Mdonlevy9927]

thought the same thing. cant touch a home in fl for under 450 and rents are so high... such impractical advice from an ivory tower.

[@dbaker0226]

As a single parent I earn the same amount and my rent is the same as theirs and my rent is on the low end. I would not sell the house. Get a cheaper car or take bus and the both of them get a second job.

[@carlariggs525]

you're right. I wouldn't advise them to sell their house. they just need to reevaluate their expenses and get an extra job/side hustle. Dave doesn't always give sound advice

[@Fe26man]

I thought the reason of selling the house was to just apply the built up equity to pay for a smaller house they can afford, not to start renting. Even if they had to rent a few months, that built up equity would cover that while they saved (but that doesn’t make as obvious sense to me as buying a home they can afford to basically just own or have a much smaller payment if it’s a little more than their equity.

[@carsonroberts5749]

They seemed set on answering her question. Dave is usually better at this, but when she asked “sell the home or accept the gift” he should’ve dug into the 3rd and better option which is increase income. They didn’t ask if there’s kids but assuming 3 years into marriage there isn’t, why is their income only about 48,000 a year? Two working adults should be bringing in close to double that and makes their mortgage totally fine. Plus they’re gonna end up with more expensive rent. They totally missed on this one unfortunately I hope she gets someone else to tell her that. She obviously should sell the car in the meantime to get a cheaper one and get everything back under control until the income is increased and stabilized.

[@elsporko321]

Exactly. They could nearly double their income with even what many would consider a "sub-par" job (work is work so not going to begrudge anyone for working, especially someone in dire straits who can't afford to be picky), in terms of reputation or required education/certifications. Clearly one of the two isn't actively working, or one or both of them are only working part-time. 1) Unlikely they would have qualified to purchase the home in the first place on a combined $39,000 income, which tells you something changed between then and now and 2) they would have been calling into this show 2 1/2 years ago once they realized they made a horrible mistake (if it even was possible, which I don't think it would have been).

[@tugboat2030]

Agree with you that it's surprising he didn't bring up the income situation. If anybody is making under the median household income, he tells them to go and make more money. All the incomes need to be above average.

[@chuckiedavidson719]

I wouldn’t sell the house with a $1700 payment just to go pay $2300 in rent on not as nice a place. That $16k car needs to be gone now.

[@bobbenoit8470]

Okay, Dave advised her to sell their house, but then what? Buy another one with a monthly payment less than $1700 or find a rental for less than $1700?!?!?! No way! Keep the house, sell one of the cars and try to increase your monthly income. That's should solve the problem. Making just $500 more a month would help alot. That should be easy for 2 healthy adults.

[@PInk77W1]

I would sell both cars and get a monthly bus pass. Hold on to the home At all cost. Rent will klll them. Don’t go backwards.

[@daveavemian5940]

rents below 1700 don't exist. Dave is completely delusional and disconnected from reality. There's no way to make the "Dave plan" work if you're not making six figures nowadays

[@alittlepieceofearth]

I agree, two healthy adults should be able to bring in more than 4k/ mo. even if they are just delivering pizza.

[@johndone8045]

@@PInk77W1 bus pass is retarded in orlando, shit is way too spread out, they need a car

[@justinhogue9861]

They don't need to be in a 400k house. I don't know how to you can arrive at the conclusion that they keep a 400k house. They have near trailer park income. Sell and put the equity in a 225k house. I live in one in the south, they exist.

[@katyedwards3935]

I love Dave's laughter. He needs to laugh and have fun more.

[@trebmaster]

This is definitely us ever since my wife lost her job and her medical bills went through the roof. There's nothing out there to rent or buy that's cheaper anywhere.

[@Shortballa11]

My wife and I bought a house and then 3 months later went through a year long medical debacle. Likely paid $15k or more in deductibles, ER visits, co-pays, and medications. We just finished paying it last month. My advice would be let some of it go to collections, and they will negotiate with you. It won't hurt your credit score and the debtors know that so you have the leverage.

[@TheFinanceZone]

Keep the house, accept the $10k gift, sell the cars, and get a second job while applying for a higher paying job. There's a job surplus right now and lots of places are hiring. Selling the house is just going to put them in an even worse position of having to find an expensive rental

[@Dan16673]

Yea. Rental will cost same or more

[@therealfallen3606]

Or use the $130k to downpay on an affordable home.. no reason to go in debt to family. Sure they should up their income but if they have that much cash after selling there’s no real reason to borrow or be gifted $10k.

[@Dan16673]

@@therealfallen3606 therr house is insanely cheap for orlando.

[@alinatamashevich3354]

@@Dan16673 Not always, there are options.

[@YoutubeFabLifeOfJan1]

The blessings of the Lord has no sorrow added to them. I receive that Dave.

[@bbkyjohnson]

I’m torn on this one. I don’t think paying rent is the best option. Not really saving money. Just kicking the can down the road as he said. Yeah it puts $100k in your pocket but house prices aren’t coming down anytime soon in my opinion. So struggle now or pay a lot more later in my opinion. I’d do everything I could to get rid of the small car payment. She said they had savings. I don’t remember if it was mentioned the amount but she said it would run out in a few months. I’d take it and get rid of that payment. $2-300 for a moderate car payment eases some pressure. Then attack the small amount of debt then go after the second car. $25k of debt isn’t a lot compared with some of these calls.

[@black4vcobra]

Bringing home $3900 a month between the both of them is exceedingly low for 2 people working nowadays. How did they even buy the house 3 years ago????

[@28cthedestroyer]

Because houses doubled in price in the last 3, she bought it before the ridiculous hike

[@28cthedestroyer]

And that's $20 an hour and 40 hours for 2 people lmaoo that's normal for Americans. Not everyone makes 60k or more

[@RomeReactions]

@@28cthedestroyer 60k a year is the around the national average for one person, not two people combined. Either they both have crappy jobs or the wife needs to get a job and help out.

[@28cthedestroyer]

@RomeReactions yes national average, but there are still people out their that don't have the ability to just get up and go back to school or be able to work more labor intensive jobs. I agree, learn a skill but when people make comments like that just sounds dumb. But I agree with what you are saying at least

[@stephanied1028]

It’s sounds like she may not be working. Sounded like she said “I use to be a nurse practitioner, but now at home with my daughter.” You could barely hear because Dave was laughing so loudly. She may need go back to work if she’s not working.

[@Autumn16511]

helllllooooo i love this channel

[@angelicab2260]

I wouldn't sell my house....sell everything else and buckle down. But not the house because the rents are sky rocket rn! She won't find an apartment for 1700$

[@reniedavisson8532]

I agree! They won't find ANYTHING!

[@tricew7561]

If they sell the house, where will they go? She won't find a replacement at the price that she can afford.

[@unfairsanic5089]

They can rent for the meantime until they are financially ready to get another house

[@estelalordiluv6973]

Agreed. Rent may even be more than the mortgage in most places

[@TuyetNguyen-pp2ew]

They can rent a cheap place, they might not like it though.

[@stephenshelton4267]

Orlando? Her home insurance probably went from $1100 to $4000 in the past 2 years.

[@CarolCityCane305]

Thanx to desantis

[@sblijheid]

@platanorico86 I watched a video about this a few days ago. It's the large number of lawsuits. The issue predates Desantis.

[@vickieclark5931]

@@CarolCityCane305 DeSantis has nothing to do with the insurance. Thank Mother Nature for all the hurricanes they get every year. That is what makes insurance in FL so high. All the claims that the insurance companies get brings the cost up.

[@stephenshelton4267]

@@CarolCityCane305 Because $8 2x4s had nothing to fo with it, nor did the wave of roofers getting free/chesp roofs fir people by telling the insurace companythat tgey had hail damage.

[@CarolCityCane305]

@@sblijheid it’s been happening since he became governor even my bald headed nazi senator rick Scott said it….btw he was governor before Biden soo yea I’m not going to blame democrats on this one especially when republicans own Florida for the last 30 yrs

[@goththicus]

I disagree about selling the house. Rent in Orlando is probably about that range. Get a second job and payoff your car debt. Provided they don’t have additional debt (CC). Of course they can always move to another state.

[@daveavemian5940]

move to another state for what? More people giving advice who have no idea what real world is. Other states have a state income tax, florida does not. Florida's overall cost of living is very reasonable. Furthermore, if they sell that house and rent somewhere else, the cost of rent is absolutely outrageous all over the entire country. Then you also get stuck in rent cycle where you're never going to be able to buy a house. The problem is these people don't make any money. Florida and their house payment has nothing to do with it. 40K in today's inflation is poverty

[@karenhennessey343]

Rent in Central Florida is extremely expensive. They will be lucky to find a one bedroom apartment for what they’re paying on their mortgage.

[@joelmartinez2278]

Feel the pain too. In California, lots of insurance companies bailed out on home insurance because of fires. Only insurance we can get is from the state, because insurance is bundled with the mortgage, mortgage jumped up big time.

[@kelligreer3975]

So true Dave. In my town a few weeks ago a children’s pastor stabbed wife and five children and set the house on fire cuz he was buried in debt and the bank foreclosed on the house. Thank GOD the entire family survived but a couple of them were in ICU for quite a while. Scary and sad!

[@BagsNBaguettes_327]

Love when Dave asked about the car debt knowing they had it. 1700 a month is affordable in Florida now, rents alone are 2000 for a 2/2. Add to that car payments, food, daycare, etc.

[@wallywal5475]

It’ affordable- sell the cars and cut all non essential expenses. Adjust food bill, cross your fingers, and say a prayer!

[@psoteriou3884]

Even if they sell the house they still have to rent somewhere and... rent money is dead money. Better to keep the house, but sell the 16k car and increase their income, reduce their expenses.

[@beautyRest1]

Agree

[@lagarde2011]

These two have an income problem more than a spending problem. Besides the cars they owe only 4k on who knows what, and they have savings, so they don't appear to be living lavishly. Bringing in only $3,900 a month combined is the issue. Amazon warehouse pays $18-20 an hour in the Orlando market and they hire just about anyone who fills out an application. If one or both of this couple took on a part-time job there, they could easily increase their take home by 2k a month. Selling the house seems insane when their mortgage is only $1,700 and they can so easily increase their income and decrease expenses.

[@tylerandmaren]

Exactly.

[@MyMusiclover28]

Even a gig job could help a lot. Im a driver for both of the main food delivery services & I bring home around $1,300 - $1,600 extra a month (on top of the income from my full time job) With a car, there are quite a few things that can be done to increase income, but the income doesn’t happen by itself, one needs to want to work!

[@dostagirl9551]

So I’ve been listening to this show for the last few weeks and one thing that stands out is that Ramsay seems out of touch with what’s going on. He keep urging people to sell their home - this one isn’t too bad because they seriously overbought - as a catch-all solution. It would be except home prices have sky rocketed. Selling a home you bought prior to the inflation will bring you a pretty bit of change but then what? Rentals are going for as much as a mortgage. I looked up what my one bedroom apartment cost now (when I lived there 10 years ago it was 650 and when I moved out it was creeping to 900) and it’s 1,300 now. For a tiny one-bedroom without a washer dryer hookup. Buying a smaller home would probably cost as much as they were paying for the larger. They should have NEVER bought that house as it was way out of their budget but selling now won’t solve anything. It’d be better to gazelle intensity these next few months until the market cools off. I’d say refinance too, but I’m guessing the only equity she has in that home is through its now inflated value and not from paying down the original loan. My god, that large of a mortgage AND two car payments. Just bad decision after bad decision. Less prayer and more common sense is needed here.

[@IA-py9by]

Refinancing would be not smart...there interest is probably 3%...and if Refinancing it would be like 7%...so there payment will increase by like $500 if Refinancing.

[@sblijheid]

I doubt they prayed before they acted. They just wanted to buy stuff they could not afford. If they did pray, the Lord would've send someone or a video their way to open their eyes.

[@mph5896]

Well, he gave advice that was better than yours. Yours was to refinance and to jump in a time machine and not buy the house. He came up with solutions to the problem that are not pleasant.

[@chicanoazteca8614]

@@mph5896 his suggestion was to stay in the home and grind. That is better than selling and downsizing for a home that would essentially cost the same.

[@adamseidel9780]

lol, refinancing and waiting until the housing market goes down to sell. You’re a real financial genius.

[@NWI_Steel]

The problem is the lender who gave a $250k mortgage to a couple grossing $60k

[@lot2196]

Absolutely. Easy money for way too long caused these insane home and vehicle prices.

[@tremainelewis1259]

Bingo!

[@toddaustin2198]

Nope. They only bring home $46,800/year.

[@NWI_Steel]

@@toddaustin2198 notice I said gross

[@janefromthecountry1820]

Back off the donuts to lose weight!😂

[@mominthe209]

Please clarify the “gift”. I’ve watched too many shows to see how bad this could end up. If the person is financially well off they may want to help you OR control you. Get it in writing that it’s a no strings attached gift that’s never to be repaid. They may get a little irritated but better now than ask for 13K in a few years. Queen Elizabeth had the best line, “recollections may vary.” Paper stays the same.

[@slimdude2011]

If the 10K was a loan, the person would've drafted a promissory note to be signed before the money was given to her. A lender would not loan that kind of money to anybody without having a notarized, promissory note to protect themselves in case the money is not paid back, unless it's a gift. Ten thousand dollars is no chicken feed! That's a lot of money.

[@mominthe209]

@@slimdude2011 Dave had a video of “granny” giving 10k to her grandson. She just said, pay me back when you can. Fast forward she wants the money back and 3K of interest. People slack when it comes to family. This lady apparently filed income taxes that it was a gift. Family can be the worst.

[@slimdude2011]

@@mominthe209Oh yeah, I've loaned money to family members, and was never repaid because, they feel like they don't have to pay it back because they are a relative.

[@Jakkaribik1]

Gift is often a way to be nice now but the people believe after years now is the time when we want things back (even if it was free people always believe later they get stuff back)

[@Hannahsunshine-]

I live in FL and my home ownder insurance went from 1900 last year to 3500 this year. Absolutely ridiculous.

[@reniedavisson8532]

Ours went from $2800 to $9000 in 3 years.

[@Hannahsunshine-]

@@reniedavisson8532 they let me get a cheaper rate with a wind mitigation inspection. Hopefully you find something cheaper!

[@Jakkaribik1]

Hannah Nice Pic haha

[@kaitlinspringer323]

She bought the house 2 years ago, I bet she has a really good interest rate. You can’t even rent a place in Orlando for $1700. Keep the house, get rid of the car, and hustle through. They will regret selling that house

[@Jack-pd4ps]

Yup

[@stephenshelton4267]

If she sells the house then she will need to find a new job. She's not likely to find a significantly cheaper house or cheaper rent within reasonable driving distance to Orlando, especially since I4 is a parking lot during busy hours. She's either going to spend hundreds more in gas a month or she needs to uproot her life entirely to a cheaper area.

[@nottelling4828]

The housing market in Orlando is insanely high, so your analysis may be spot on.

[@slimdude2011]

If the caller sells the house, the couple will have enough money to pay off their other debts and rent an affordable apartment to live in. Renting a house or an apartment has less financial responsibility than owning a home, where everything is out of pocket expenses.

[@codym7960]

It shouldn't be that hard to find a job equally or better thrt are only making $48k a year between two adults ...

[@Feelsbad1]

@@codym7960 $60k between the two of them. Seems like either only one is working or they are both in minimum wage jobs.

[@stephenshelton4267]

@@codym7960 I'm curious as to why the income of two afults is so low, but Ramsey loves to leave out major details like that.

[@e7gomez538]

Have a 3-6 month timeline and try to find higher paying jobs and if not then sell. But then again it’s Florida so insurance is going to keep going up

[@irenaeusofpensacola]

What is happening in FL is criminal. People are literally being driven out of their homes because their insurance 10x'd within a few years. That isn't their fault. It's the fault of politicians that are sleeping with the insurance companies. The insurance companies had to pay a lot of claims? Boo hoo! That's part of the risk of being in the insurance business. It seems that insurance companies think that policy holders should bear all of the risk. I'm glad my house is paid off so I don't have to participate in the home insurance industry in FL. I gave my insurance company the middle finger and walked away. If something happens to my house, I'll just pay cash to build another one. I have gotten lucky and not have been dumb enough to mess it up, but I really feel for people who are trying to make an honest living but are being driven to financial destitution by insurance companies. By the way, where are these two going to go when they sell their house? They could move to a state where insurance is cheaper. I don't think they can rent in their town because in a lot of places it's tough to find rent below 1700 a month. I live in NW FL where the cost of living is cheaper and an older 2 bedroom apartment was 1600/month last year. I heard the rent went up at that apartment but I don't know how much.

[@danieljohnson4418]

Sell the home, and pay more in rent---great idea!

[@slimdude2011]

First of all, the couple (who are newlyweds) were not ready financially at all to buy a $250K house and two cars. If the $250K was only for the price of the house, that doesn't include the interests, insurance and other mandatory charges. If it was me, I would sell the house. Either way, they can't afford it. If the property goes into foreclosure, unfortunately they're going to lose the house anyway. There is no other option but to rent or stay with a family member temporarily.

[@unfairsanic5089]

Actually you can get a cheaper rent way less on their area. It will build their savings until they are financially ready to buy a house

[@Thibaudlee49]

Right!! I think that was terrible advice. He doesn’t always listen to the details. Omg!! A 1 bedroom apartment in Orlando is about $1800.

[@slimdude2011]

@@Thibaudlee49 If the cost of living is that expensive in Orlando FL, I would have to move to another state where it's much cheaper. In Ohio (where I'm located) a person can rent a 3-bedroom house for less than $1800 a month.

[@spanky3458]

My wife and myself went to a bank to see if we could get preapproved for a mortgage. We had decided how much we were interested in borrowing. She had a pay stub and I took a 32 hour pay stub. The banker did some numbers and said we were preapproved for 225 k. Her and I had decided to keep it at 100k before we went. When the banker said 225k I said then 100k is ok. He kept insisting we borrow 225k for a better home. Finally I said can we get a loan for 100k or not? He was pushing a bigger loan on us that we did not want. We wanted a two bedroom home that was it....

[@gloriaalex11]

Salesmen! When I bought my home, the banker wouldn't even quote me a limit. I had to tell him "Look, I don't want to pay more than X dollars a month. How much house will that get me?" Then I told my realtor don't even show me anything over that amount. Y'all did well to advocate for yourselves.

[@itsnotyouitsme82]

When I bought my current home in 2015 I went to the mortgage broker to get preapproved and said I was looking for something between 110k-140k (in the Midwest that used to buy a nice home) he said you can have up to 180k, I remember thinking; I'd like to continue to eat, I spent 118k.

[@reese85]

Where do y’all live to find a house that cheap?

[@Elizabeth_lowkeyluxuries]

Same! No way I was going to max out a home loan. Found a great place and took out one for $82,350.

[@sblijheid]

His commission is higher at 225K.

[@kclefthanded427]

Sometimes things don't come as planned even if we did everything right

[@matthewlangley3524]

By the Ramsey plan they didn't do anything right.

[@sblijheid]

By logic, they didn't do anything right. Their debt is too high and their income too low.

[@unfairsanic5089]

Thats not the right way lolz

[@Aztecadr]

The problem is not the mortgage, it is their income. They both need to work and double jobs if needed to afford the house

[@OopThereItIs77777]

I live in the shirt Rachel has on. Literally own it in 4 colors. It is so flattering! Perfect basic; love her minimalistic style

[@billregan8081]

What is the shirt? I'd like to get one for my wife. Thanks!

[@JB-ri6zp]

Your property taxes are capped at 3% a year in Florida. They must've bought last year and now they're being reassessed. When buying a home you must factor in the new property tax and not the old one.

[@sasukesuite1]

My mom has been "trusting the Lord" for the past 20 years that He'll give her a house to move into out of her Section 8 apartment while she's been making about $23k - $30k per year. Faith without works is dead. No miracle will happen without making changes to your life.

[@cutlerylover]

asking god for free stuff thats nicer than what you have is not very religious to begin with, Im pretty sure Jesus didnt live in a 400k condo, lol man worse beat sandals and a robe he doesn't care if you get your new Lexus or a bug free home...the ONLY reason people get depressed by what they dont have is focusing on what others do have, no matter how successful you get someone else will have bigger cooler stuff...you cant win that game...

[@Yokidasan]

Wow my mom has been doing this exact same thing. But also claims she doesn't believe and claims more spirituality. Ever since we were little she's been doing this. And I've told her the same thing. Sucks

[@cutlerylover]

@@Yokidasan faith is good but its suppose to be in addition to action...

[@EmpressMermaid]

My grandfather's favorite saying: "The good Lord will grant you a plentiful harvest....but He won't plow the fields for you."

[@Yokidasan]

@@cutlerylover most definitely

[@jimmymcgill6778]

Keep the house, do not sell. Rent is more then $1,700 in Orlando. Dave just say's sell the house, without worrying about rent? They need more income. Not to sell the house. Just sell her car, and get a 5k car.

[@ceciliapreziose3783]

find an apt that is within their means

[@jimmymcgill6778]

@@ceciliapreziose3783 Still, no where in Orlando is less then that.

[@sluggingbread]

Agreed Jimmy. This is a income problem.

[@jordanlavalley]

Rent out part of the house.

[@Dan16673]

​@@ceciliapreziose3783will cost as much as the house

[@gustavsorensen9301]

Property taxes in Florida are insanely high

[@anjawhitaker]

But you have no state income tax, and that is part of the reason that property taxes are high.

[@midlifecrisis7888]

Texas says hold my beer

[@jimmymcgill6778]

Florida's average real property tax rate is 0.98%, which is slightly lower than the U.S. average of 1.08%. That is not high.

[@stephenshelton4267]

@silentnot4812 Property taxes where I am are lower than that. I have a few rentals that are supposedly worth more than you cited and the property taxes were about $3000. Plus if it's your primary residence you can get it homesteaded and it drops significantly. It's the homeowners insurace that is getting insane around here and growing by 60-80% a year. It was basically flat, one property even dropped a few dollarsone year, but now it's growing faster than the budget of a public school.

[@patrickchilds5486]

Our house in Orlando paid 625k in 2013, now worth 1,250,000. Our property tax is set to be $9600.00 this year.

[@bettysmith4527]

Let's be honest, they bought a house they couldn't afford right from the beginning! They need to find better careers!!

[@alinatamashevich3354]

They were riding high, time to face the music

[@Joce123]

You are so uninformed how embarrassing that you do not know what is going on with property taxes and insurance all my gosh.

[@briandfallon74]

Agreed. They couldnt afford any of that before and it’s worse now.

[@amireallythatgrumpy6508]

They couldn't afford the property when they bought it. The uninformed one is you. @@Joce123

[@bratzboyz]

Exactly, well said! There needs to be more money coming in...in order for them to spend the way they were spending.

[@lilflip1820]

Apartments in Florida are more than their mortgage. Selling their house might lead to housing crisis.

[@MyMusiclover28]

I don’t understand how TWO people only bring home $48k a year? 😮 i don’t know their situation nor am I criticizing their choices, but I am a single mom who brings home around the same amount. I have a full time job and I also do gig jobs almost everyday if I need to. If I’m doing deliveries I bring my son with me so I also save on the babysitter…we gotta do what we gotta do 😅

[@bt2598]

Yea Dave is right. Trust but be accountable, take action, and make decisions.

[@MyraChavez-dy6ip]

“Rent” might be worse than the mortgage payment

[@faithchrissybeauty]

Sell the house?? They have about $2300 after they pay the mortgage. Sell the cars. Where are they going to live in Orlando for less than $1700 a month. I’m assuming Dave is telling them to sell so that they can save up more for a home in the future.

[@midlifecrisis7888]

You can’t even get a decent rental for 1700 in Houston right now. Not unless you want to be in the hood. 😂

[@caezar044]

Yeah I think a lot of people are going to have to suck it up and be a little house poor instead of selling their homes because the 3% mortgage is a golden handcuff. This caller is spending 43% of their income on housing which isn’t smart, but if they’re able to hold onto the house and increase their income by 30-40% over the next couple years, that would be ideal. They’re only making 60k between the two of them so it shouldn’t be that hard to go to 80k.

[@jimmymcgill6778]

Dave have not paid rent in decades. He lives in fantast land.

[@faithchrissybeauty]

@@caezar044 I agree. Yes, almost 40%. I wouldn’t do it but in their case the only issue I can see will come if they acquire debt. Hopefully they are contributing to a retirement fund through their employers. With $2300 remaining, there is still money left over for savings for the unexpected. I did not hear the caller mention children. Perhaps this call was edited. There is a reason why Dave recommended to sell. Perhaps they aren’t financially responsible, hence the car payments instead of buying a beater until they saved enough to buy a car outright. But again, where are they going to rent in Orlando? The median rent is around $1500. Interesting call for sure.

[@AmericanWears]

Exactly, don’t sell the home. They’ll be looking for one in a couple years wondering why the mortgages are now $2700 on the same house. Their current situation will become more affordable as they make more. You’re gambling thinking your raises and wage will outperform inflation especially in this goofy economy.

[@shadygrady3819]

Donut addiction is a real thing. I’m glad Dave touched on it and is donut free for 3 years . I am now doing donuts in moderation, I just can’t quit .

[@gothducks]

No questions about what they do or if both work. The information on the situation is incomplete.

[@JustinCase780]

Why not increase your incomes instead of going through a move.

[@barnabusdoyle4930]

The mortgage jumped because the property taxes and insurance went up a lot. This will happen again in February of next year probably putting the mortgage close to $2k/month. It’s better to move out of that situation then to sit in it until the home is unsellable in the next year or so.

[@phillips9945]

I’m surprised he didn’t advise that either. If they could sell the cars, pay off the debt, and increase their income, then they might have a chance. Usually Dave advises to sell the house as a last resort. I guess he thought they still wouldn’t make it.

[@TheFinanceZone]

@@phillips9945 Yeah. They could take the $10k gift, sell the cars, and allocate the $10k gift over the next two years to help pay for their house payment. By that time their incomes could increase or even just get a second job. That way they walk away with a higher income and still have their house

[@blackworldtraveler3711]

They should have thought about increasing income before buying that home since they could not afford it.

[@barnabusdoyle4930]

@@blackworldtraveler3711 Their payment went up to $1800 a month…In Florida where homeowners insurance premiums are going up by 100% or more plus property taxes. My guess is their mortgage was less then $1200 last year. They used to be able to afford that house.

[@rosspimental8384]

She said take home $3,900/mo. but Rachel screwed that up. Assuming they’re young and will be making more in the near future, I think they can get rid of cars and make the house payment work. Tight for sure but not the time to be looking for real estate.

[@timewing4611]

$1700 for a house seems pretty good in this day and world. I would almost bet there’s only one of them working. Sounds like they need to add a job or a better job

[@CarolCityCane305]

Thanx desantis !!! He hasn’t done anything to help

[@benjaminhough8804]

I honestly don’t understand why you’d sell the house or even why that was recommended. They bought it for 250k, by my research that is RARE. Now it’s worth so much more, I’d do everything to keep the house. Though, they probably put very little down.

[@neilsmith9066]

Because they will be foreclosed in 6months

[@k8schmate]

Their insurance skyrocketing is what brings the mortgage payment up beyond their ability to pay. This is FL.

[@jaylee5639]

Because their payment, at $1700 is a huge percentage of their monthly pay. It's not sustainable to sink that much into the house. I've tried it. It sucks.

[@vickieclark5931]

Insurance in FL is ridiculously expensive due to their bad weather over there. Half the residents lose parts of their homes every summer due to hurricanes. It won't be long before their mortgage doubles because of the insurance. If half of your take home pay goes to your mortgage, you need to sell it and find something else or get a better job.

[@ricardom3597]

Majority of the problem is people have crazy car payments why get a car you can't buy out right we gotta change terminology on car ownership you didn't buy a new car the bank lent you the money for the new car I always ask people did you buy the car they say yes and tell me they make monthly payments then I just look at them like then you don't actually own your car

[@johnroark9568]

Same thing happened to me. In 2019 I bought a new house with a 700 mortgage. Then because of taxes and my neighborhood went up in value my payment doubled and I couldn't afford it. I was literally forced out of my home because it gained so much value. I sold it and I'm getting 16% on the profit. Now I rent and wait

[@slimdude2011]

When you sold your house, did you have to pay off the balance of the lien from the lender before you were able to earn a profit?

[@lidgerwoodj]

Why does your payment change if the house goes up in value?

[@kdonor]

Because property taxes go up.

[@johnroark9568]

@@lidgerwoodj escrow

[@johnroark9568]

@@slimdude2011 oh yes. I bought it for 140k and then sold it for 226k so my realtors and closing company just handed me a check for the difference

[@GunGlutton]

The average rent in the US is now 1700 per month. Dave will say just go out and pick one of those 130k a year jobs off the job tree! but dont you dare take out a loan to get one of those jobs. He is so out of touch

[@SCFLEUR]

Sell the house and possibly pay more in rent?🥴😬

[@jorrincruz8923]

They have 130k equity, they can easily buy a condo and not have to worry about anything else

[@alexharker7223]

Agree. Sell the house, take the $130k equity, move somewhere you can buy a more reasonable $200-$250k house at less than $100k borrowed. If you aren’t upside down on the $16k car, sell it and buy a less expensive car. At that point, you’re pretty much cleaned up. Try to increase your income and pretty quickly you’re debt-free and saving a lot. Don’t take the gift. They’re never truly free. They come with a social and relational price tag even if it’s not a financial price tag.

[@cmiovino]

Buying any house on a $~45k/year household income is insane. "The payment changed to $1700" sounds a lot like an adjustable rate mortgage. Probably went and got approved for $250k with that adjustable rate, maxed out and bought a $250k house.

[@KevinPerez-gb1yt]

It’s property taxes the house went up in value

[@lesg5270]

Selling house is actually a blessing. They kept the home 1 yr and clear 100k

[@reniedavisson8532]

That won't buy anything in Florida. They will have trouble finding another home for $250k

[@electricalsociety5593]

Dave have you seen rent prices? She would be nuts to sell that home. Their ONLY option is to increase their income at this point. They can’t sell their way out of poverty. This is the harsh truth that even Ramsey is going to have to swallow. You don’t have this magical equity in your home. Inflation owns that “equity”. People will need to get paid in order to live in this new economy. That means 60k entry wages and 175-200k average household income. To sit here and cast judgement on her for using the “gift” as being in denial is no different from her selling her home for the “gift” of 130k equity when it serves no purpose other than putting it down in hopes of getting close to her current 1700 a month rent. You can’t rent a studio for under that in places in the USA. They should take the gift, pay off the lowest car, liquidate as much other debt with the remainder, INCREASE income, and debt snowball from there.

[@theflightsimulationexperie6894]

I agree with a lot of your points but I will say she can get to a 1700 a month mortgage again if she sells that house. Will it be in Florida? Probably not and I would be moving after I sold because Florida is done for. I live in Charleston SC and I see Florida plates in every direction I turn. We have townhomes here and houses in decent areas for 300k. She could get her payment to that 1700 if she put down 130k on a home here.

[@blackworldtraveler3711]

@@theflightsimulationexperie6894 It's done for with regular people having debt,family,large expenses,etc.. Florida is mostly for the wealthy,financially secure,high income,and retired. Homestead exemption won't hurt. One of the reasons myself and others bought with cash in 2008 after housing crash. Heck brand new $300k condos were going for $60k and you could buy a penthouse for around $400k or less back then in places like Miami. Brand new 4bed/3.5bath.3car houses were $350k-400k.

[@theflightsimulationexperie6894]

@@blackworldtraveler3711 must of been nice around that time. Unfortunately for myself and people of my generation, we were kids when the once in a lifetime opportunity (2008) to buy real estate presented itself. We had no money because we were too young. This currency system is beyond corrupt and the older I get, the more I realized that you need to just accept that life isn’t fair and never will be.

[@fornos123]

So what are they going to do after they sell?? Rent??? Do you know how much rents are in Florida? $1,700 is a 1 bedroom in Florida FOR NOW!

[@marknewton6984]

Don't sell the house

[@catherinep2034]

Going to guess the $10k is because that family member doesn't want them to move away, or doesn't want them moving in.

[@LMae-rj9qi]

You’re so funny.😂

[@opticallyaustin]

Bro he does not know the Florida market if he’s telling her to sell lol she won’t find a 3:2 for under 2k. If you want to live in Florida you’re gonna be underpaid and pay insane housing prices with insane home insurance rates. I make about the same with an 1900 mortgage. We paid off the vehicles and all other debt and that made it manageable. Price for paradise I guess

[@barryetherton4889]

Do not sell the home! You will need to pay RENT...

[@Shortballa11]

Both could get a job at Amazon FLEX schedule and work one extra 10 hour shift a week and bring in $1,200 more a month. That would help out a lot. I wish they got more information on the cars and careers too.

[@brentsheldon8667]

Love Dave have been listening to him for many years but sometimes I think he's to confident in his quick answer to some of the callers that he gives them poor advice. His daughter on the other hand can be much more balanced.

[@jaaxoon]

Lots of people are over extended but you just have to let it work itself out for things to come back to earth.

[@destinyani]

Rent is higher than mortgage right now…

[@amireallythatgrumpy6508]

Only when you don't take into consideration all the other costs that come with home ownership that are not included in the mortgage.

[@Nature-ep5cu]

@@amireallythatgrumpy6508 well said.

[@amireallythatgrumpy6508]

Oh no you can't. Not when you also add on insurance and taxes and maintenance costs. @@donovanlewis3053

[@TheFlyingZulu]

Making 3,900 a month (today) buying a 251,000 house two years ago... ouch. Yea. They bought too much house. I couldn't imagine buying such a house and only making 48,000 a year.

[@jdlpena]

Ok so they sell house and the cars, end up with about $90k on their pockets so what’s next? They’ll have to get cars and housing will keep going up. I don’t agree with that advise. Sell the cars, apply for better jobs, and keep the house is not a luxury at that monthly mortgage.

[@John3.36]

Throw it toward the debt and downsize. What is so hard about that?

[@Unchained_AdventuresX]

After reading a chunk of these comments im surprised a bit by how easily people throw their hands up and say this is the best they can do, they should keep the house and struggle. My thoughts are that if the two of them together make 4k a month, then no one has a solid job/career holding them in that area. Sell the house, move away a bit into a smaller area where you can get a 2 bedroom rental for around 1k. Prolly get rid of a car payment and try to pick up something about half as nice. Everyone suggesting they work a 2nd job and cut everything to squeeze out the mortgage payment also forgets they wont have enough money to cover major repair/replacement costs if anything goes wrong. They need to downsize, reduce their costs, and free their mental and emotional strength to focus on career advancement and not the financial struggle itself. You go backwards a little bit so you can focus on income growth without the pressure of financial stress, then several years down the road as you are increasing your income, you can set a plan for moving back into home ownership. Remember, rent is relative to location. Unless there is some magical reason they MUST stay where they are, moving away a bit would greatly reduce their burdens. They need to focus on their careers, not trying to keep their lights on. Sometimes you have to go down your ladder in life to start climbing a ladder with a higher ceiling. You go down a little so later you can go much higher. A medical issue, a major car repair, and then a broken AC unit is all it would take to push this couple into a very, very bad situation. They need to rent, so they can collect their thoughts, lift their burden and reorganize. Most of us have been there atleast once, it sucks. Better jobs, reduce living costs, and a plan for growth. They will be fine This economy isnt rolling back, that isnt how it works traditionally. The rates may rise and fall but inflation tends to stay as a new average. Minor spikes and drops but this is the new norm. Gas, groceries, most real estate, used car prices....if you think they will drop back to ppst covid rates you are in a bad mental state. Cant struggle and "hang in there", there is no relief coming. Adapt, grow and learn to live in the present. We are here folks, sad but true. Accept this and moving forward becomes a bit easier Im struggling myself, so best of luck to us all.

[@reniedavisson8532]

There is nothing in Florida for rent at $1000

[@cmcmanu8]

Dave is a comedian sometimes

[@beckypetersen2680]

How much do they think they will have to pay for rent once they sell the house? In Orlando....

[@Jelly._.cat._.1]

I respect you 100% Dave and I hate when people disagree with you in the comments. But, dude you are out of touch on this one. I know because my numbers are the same as the caller and I have been doing it for the last 7 years (exception is I don’t have a car payment though). Apartments in my area (Denver suburbs) are about 300 more a month than my mortgage. I will say I have been lucky that I’ve only spent about $3000 in the 7 years I’ve been here on house fix things.

[@loridesousa9146]

This is so crazy. Why would people drown themselves in debt . This is when Ramsey comes in to rescue these people

[@grandbabieslarosa5793]

Why didn't you ask if she was on a adjustable rate mortgage? You can hardly sell your house right now and move into anything even a rental without paying more than she now.

[@jhonilocran6077]

But she’ll have 130k cash and no car note

[@greggpurviance7252]

​@@jhonilocran6077kicks the can farther down the road

[@greggpurviance7252]

Probably insurance, not ARM

[@shachede6828]

The mortgage is not the issue it’s the property tax and insurance. You can’t really control it. Got to fight with the local government to reduce and even then they won’t reduce it much.

[@alinatamashevich3354]

Even if it is 1K, they cannot afford it.

[@grayandgray]

Accept the $10K and process a car and other debt renovation to eliminate payments. THEN see how you land on a budget and whether the house needs to get involved in future financial renovation.

[@Lamski3]

Dave, where exactly do you think they can live for less than $1700/mo?

[@Stupid9808]

Wyoming, North Dakota, Kansas, Arkansas, Louisiana, ...

[@alinatamashevich3354]

@@Stupid9808 Alabama/Georgia

[@christinateresabrown]

@@Stupid9808but then you make way less moving to those places.

[@Lamski3]

@@Stupid9808 caller was from Orlando. If they move, income will change with new jobs, etc... so that doesn't help the situation.

[@CarolCityCane305]

@@Stupid9808who the hell wants to live there

[@AGM-ts5bb]

I've heard this saying many times: "God provides our needs, not our greeds".

[@Tasucu-b4j]

Dave got it wrong on this occasion. Please DO NOT Sell your house.

[@Dd-760-]

There making $500 a week. It’s time to get another job or move. Sell the house. Hit the reset button with the equity left over.

[@dummgelauft]

Savannah is in Georgia....??..and how the eff did they get approved on the home loan on this sort of debt/income ratio.

[@loujon191]

It’s amazing how some groups of people can get mortgages for a home they can’t afford

[@Fishouta]

They may have had a higher income at the time of the home purchase. Dave did not ask the right questions about their current income.

[@Nature-ep5cu]

@@Fishouta just because you have a high income doesn't mean u should blow most of a house. They are still spending above their means

[@shachede6828]

This is not a mortgage issue, they home value increased by almost double, so the property taxes they have to pay is now for the new price. You mortgage is the same but property taxes increase as the home value increase by crazy amounts. And your insurance also increase as home value increases. This what happens in place with new developments. You go from paying $2000 a month to 4K a month. Did you listen to call? Smh

[@hekilleen]

As if that’s a good thing.

[@reniedavisson8532]

It sounds like they could afford it before taxes and homeowners insurance went through the roof.

[@Hegelian10]

If youre going to buy stuff, buy stull that appreciates (property, shares, valuables, art, antiques) but minimise on the stuff that depreciates (cars, watches, expensive phones, handbags etc.). Put most of your money where the sun don't shine, in an investment portfolio - look poor. Who needs to look rich, that's what people on council estates (projects to you) do.

[@kay22100]

Lol not everyone fights over money. Me and my husband have not had one money fight. And yes we’re in baby step 2. Even when we had our “ah ha” moment we weren’t fighting. And they have $1700 mortgage! It’s gonna be hard to rent at that rate in a decent area in FL so I wonder if Dave spoke to soon and didn’t think about all the variables. Did they even ask if they’re able to increase their income?

[@michaeltoney2277]

I disagree the house should stay. She isn’t going to find cheaper housing. The low hanging fruit here is the cars!! Cut down anywhere possible but keep that house!

[@Tenjiecorner]

This is why buying a house is a bad idea for most people

[@daveavemian5940]

check out rent prices nowadays. 1700 payment is very cheap. lot of people giving financial advice who have no idea what the real world is like - dave ramsey is in this group. Rent prices are absolutely outrageous nowadays, as is everything else

[@Philippinesbound42]

The problem ? They have a 1700 a month mortgage ? Where some is going to principal. Where are they going to live for cheaper ?

[@rangequeen]

These folks could keep the house if they got rid of the car debt and budgeted.