You Are Not Bankrupt!

💵 Create Your Free Budget! Sign up for EveryDollar ⮕ ter.li/6h2c45
📱Download the Ramsey Network App ⮕ ter.li/ajeshj
🛒 Visit The Ramsey Store ⮕ ter.li/7vyom2
📞 Have a question for the show? Call 888-825-5225 weekdays from 2-5 pm ET or send us a message ter.li/n88ly5
Explore More Shows from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/ng9950
🍸 Smart Money Happy Hour ⮕ ter.li/9gcp3d
🧠 The Dr. John Delony Show ⮕ ter.li/2u3mc0
💰 George Kamel ⮕ ter.li/1elws8
💡 The Rachel Cruze Show ⮕ ter.li/n2u6jc
💼 The Ken Coleman Show - Highlights ⮕ ter.li/1rbjr2
📈 EntreLeadership ⮕ ter.li/ktxv2k
Ramsey Solutions Privacy Policy
www.ramseysolu...

[@keithc187]

"Clear 30k of debt in one year???" Yeah you earn 80k, some people make half of that and survive.

[@pault726]

Hey, this guy got bad advice and was smart enough to call Dave because it didn't sound right to him. He doesn't seem to be a regular listener either, so not thinking he could pay off his debt so quickly is, sadly, normal. Kudos to him for asking, and all the more if he/they follow through on it.

[@sblackburn3482]

My husband and I have paid off 29K in debt since January...we should be debt free by Oct/Nov. THANK YOU Dave Ramsey!

[@roxannegordon6162]

"Hi Dave. I'm fine. I want to declare bankruptcy."

[@Simon-oy7kf]

Dave: What are your cars worth? Caller: $20K combined Dave: Yeah but what are your cars worth though? Caller: ...

[@matthewwilliams9200]

the silence was a tell he didnt want to cut back. hope they were able to do it

[@LizJoyDolan]

I’ve paid off almost $15,000 in credit card debt in 6 months

[@bigrod1674]

Nice job.

[@adamv4951]

I'm determined to do the same as you! :-)

[@billgateskilledmyuncle23]

Marry meeee!

[@LizJoyDolan]

@@billgateskilledmyuncle23 hahahaha

[@NeoValient2020]

good job!

[@lilomarie7313]

Student loan is not bankruptable. The 4 ways to get out of student loans pay it, take on a loan forgiveness program working in a rural area, be permanently disabled to the point you can't earn or perish.

[@alfiemarie]

i think paying off debt and choosing the more difficult route teaches you a valuable lesson once you’re already on the other side. its not only a financial transformation, its also a transformation within yourself.

[@mmp495]

Absolutely 💯. You see and feel money differently.

[@PInk77W1]

I had a co worker who was 30. Lived with his mom rent free. Had $16k credit card debt. On 45,000 pay. He went to court and filed bankruptcy. He said “It’s a right to file bankruptcy.” I paid off my cc debt of 27,500. And it was painful. Now I have almost $27k in savings

[@nikkisigmon8090]

Yet who looks up to that boy-child?

[@NeoAndersonReloaded]

They dont want to change lifestyle

[@panpanifyoucancan7120]

He hesitated at "so no life any all?" Towards the end, I still didn't see this guy's will coming out of debt.

[@BlueFlyer83]

Yeah dude, you could hear the disappointment in his voice.

[@elevate4eva]

I paid of $37K of student loans in 13 months on a $84K salary.

[@terriesmith8219]

These people are still young, they have a high chance at turning this around. Good luck to them.

[@davidcadman4468]

Dave, you are right on the nail here.... there so young.... it's not the end of the world to cut back on their lifestyle for 2 years... these two are going to be such wealthy people.... and generous.... thanks for posting this Dave....

[@RadRebelMx]

Some ppl are so clueless... Think for yourself for once, and stop listening to "professional" so called advice. That financial advisors advice to file bankruptcy, lol

[@ChrisMFlorida]

You borrowed the money with the promise to pay it back.. be a man and pay it back.

[@tommyd0624]

Chris Vandernaald if file bankruptcy was a better financial choice why would they “be a man” and pay it back? It’s not the case here but your argument is silly.

[@Simply.Homicide]

umm nothing is wrong with bankruptcy. Trump filed. He's President. Your argument sucks.

[@---cr8nw]

Bankruptcy is a consumer protection that serves a good purpose. If you get buried too deep in debt, you can bankrupt your way out it. It will destroy your credit because you're basically just declaring "I refuse to honor my debts." So, yes, if at all possible, pay your debts. If it's not possible, file bankruptcy. But Dave's right. The majority of their debt is student loans, which are bankruptcy-proof.

[@ImSeriously2123]

My wife and I are now debt free as of November 17th. We paid off 92k in 3 the half years, with 51k being in the last year and 5 months all thanks to you Dave!! Dave, quick question though...If credit score doesn't matter and we're not supposed to bow to the FICO Gods, then what are the negative effects of filing bankruptcy? I know it severely hurts your credit and stays with you for a long time, but if our credit score doesn't matter then why should we care about filing bankruptcy other than the principle of paying back what we owe? I hope you see this and comment back!

[@lilliancullen1327]

Dave Ramsey is trying to get people to see that this is more about behavior than about the math. Most people who file bankruptcy tend to have to file again at some point. Life is full of storms, if he teaches you to pick yourself up and weather the storms then you can carry that with you throughout your life even if you get back into debt, you can pick up and start with the baby steps all over again. And it is not a one size fits all but truly in this couple's case making $85K, they certainly can get a on a written budget and take on extra speaking engagements which pastor's tend to do to tackle the debts they owe. They can even set the example in their church and invite the church to go through Financial Peace University strengthening their resolve to not only empower themselves but change the lives of so many other people in the process. If no one walks you thru the process of knowing that you can achieve something then you will always be sold by someone who tells you to do something contrary to what you are fully capable of achieving. So the caller does not realize things that other's who have listened to Dave Ramsey or a parent or have just been savers and lived below their means knows all about. He had the courage to ask. Ask and you shall receive. Okay but the answer is not always easy to implement but it is doable. I am cheering for all the underdogs to know that they have more power than they know and are not actually underdogs at all, they are winners! Two paths are before them now!

[@bangladeshirealtor]

A bankruptcy can have lingering effects past a credit score . It can impact your ability to get a mortgage , start a business sooner etc when most people have student loans (that are not bankrupt able ) as the majority of their debt it’s not sensible to apply for bankruptcy. Dave says not to bow down to the FICO gods lol he is worth millions of dollars because he is a nationally syndicated radio host , best selling author and speaker . He has the capital to do large ticket items without needing to borrow , the majority of us don’t , without significantly liquidating our assets . So take what he says with a grain of salt and live in reality lol

[@gigi8528]

Wow, how much do pastors make? I really hope they stick with Dave’s advice. The moment he asked “So you said there’s no eating out, no vacations, and no life?” I heard doubt. It’s harder than it sounds but it can be done.

[@DillonErickson]

Gee Cee depends on on town and how much people in the church

[@BassPlayer60134]

I haven’t gone on vacation for 13 years and I eat out less than once a week. And for the last 10 years I haven’t had any non-mortgage debt. I make enough that I could take a modest vacation and could eat our more often but I don’t. I am beginning to realize I am strange.

[@Plutoboy85]

BassPlayer60134 Think you have got to find a healthy balance of saving and treating yourself. Can't take your savings account with you when you die.

[@gigi8528]

BassPlayer60134 it’s sad that we pretty much have to accept the fact that we work hard just to pay bills. I hope you find happiness as well while you make sacrifices

[@roxannegordon6162]

Gee Cee: Yes he sounds like he had no clue just how those things add up. My family goes on a week vacation once a year and I have to plan really hard all year for it since the cost can add up really fast with food and toys. yikes!! My former husband never figured that out, just packed up and went. Then fussed about credit card debt after. I'll never go back to that life. I was regarded as just a dumb woman not worth listening to me about anything. OMG!!

[@TeKnoVKNG23]

Live on 50k? It would be more like 30k because their net income would only be in the 60 thousands after taxes. I really wish Dave would ask what "net" income is vs. asking household income because nearly every time he covers these questions he deals with their gross income and doesn't take into account taxes and other monthly bills. It creates this illusion that there is so much expendable income for someone when that simply is not the case.

[@scottecooke]

I have been thinking the same thing. But he did say get like 6 extra jobs, so I guess that would increase it enough it wouldn't matter.

[@wmurray003]

I assume he is basing his advice on the fact that the people are giving "gross" income...but knowing Ramsey, he may not be. He gets very emotional when he hears numbers and gets stuck on small details that don't matter so much in the big picture.

[@froggore52]

Of course he's considering taxes. "Live on 50k" means live on the amount you take home from 50k after taxes.

[@pamelam4]

I always think that too. Your income can drop significantly once you factor in taxes and monthly bills like utilities and insurance in to the equation. For example, just having a car - you need to factor in cost of gas, insurance, maintenance, etc. Idk why he never seems to want to consider these things...

[@beng4151]

He does. I think often times they ask the caller before they put them on air.

[@rebeccaoliver7977]

Dave always talks about having, "No life." There is so much life to be had without spending money. Maybe that's just my view as someone who has lived below my means for a very long time. If people just had a different view of what fun was -- they wouldn't have a problem :-)

[@r3vmixman]

Dave Ramsey always acts like tax doesn't exist. $85k is like $55k take home.

[@kimjong-un5562]

55k after health insurance to?

[@sbditto85]

He did say take 6 extra jobs ... so .... _shrug_

[@itsnastynatetv]

So you can’t live off 55K to take care of the 34k debt?

[@caniggiaful]

@@itsnastynatetv Some can. But people that have 34k credit card debt can't, I'd guess. In any case, best of luck for the caller.

[@eurekahope5310]

Married, filing jointly in MD based on $85K is $68K. This is assuming no further deductions which could lower their tax burdens. In actuality, wife's income may incur fewer taxes since she is clergy (not always, but certain benefits such as housing allowance are taxed differently). If they don't have children $68,000 should be sufficient to live and save. If they have children their tax burden drops by $2,000 per child. I do agree it is hard to judge take home pay based on gross income without all the circumstances.

[@BeautyMommysUnite]

That's nothing. A lawyer told my boyfriend to file bankruptcy with 11k in debt.

[@WorBlux]

Sure, nothing like adding 15k of legal fees to the chapter 13 wage garnishment.

[@dariusfitnesspro4163]

I believe in you my man! Discipline and a routined lifestyle doing Dave’s plan will get you there!

[@margaret-marywhite299]

I bet this guy is so happy to get a second opinion. Getting out if debt in four years is so much better than the 7 years of bankruptcy stigma that his "financial advisor" neglected to tell him about. Ultimately, it will also help his wife guide her flock through tough times. Win/win.

[@JonSpohn]

Where did they find that “financial advisor”? On a poster in an alley way?

[@AslansMane88]

Wife's a pastor and he wants to default on debts he promised to pay. Can we throw the spiritual red flag now?

[@ethandowler4669]

you can throw the spiritual 'red flag' after "wife's a pastor" lol no need to get to the debts

[@MrRazaali84]

😂🤣

[@hamedalmabrok9410]

Good point.

[@BassPlayer60134]

So is this going to be the place the “female pastor” debate will happen. I’ll just leave my lawn chair here...this is gonna be fun.

[@ilyaguseynov4761]

Yeah I perked up when he said pastor. Bad financial advice and spiritual stance is a deadly concoction.

[@janebaker4912]

He sounds so sad that he's been told not to file for bankruptcy! He needs to know the reasons why filing would be a bad idea.

[@ominous450]

As an Operations Manager in Maryland, he should be making at least $95K. His employer is low balling him at $85K. Ask for a structured yearly raise or find another job

[@barbararepko4824]

“Find another job” making more, as though that’s easy to do.

[@kinocodner4307]

@@barbararepko4824 you never know until you try.

[@alvinnguyen702]

600k medical bills would make you bankrupt.

[@eileeneclark9011]

6/7/18.....$600K medical bills would be a severe situstion....& many if the doctors & hospitals & Big Pharm would be able to "write off" or drastically lower/adjust their bills on your illness. It would take somebody in the medical/pharmacy field to approach the CORRECT PPL/RIGHT DEPT "DECISION MAKERS" or even get a public "campaign" going with local community business & politicans getting involved....BUT IT CAN BE DONE! PUBLIC OPINION would "encourage" that the ppl owed the $600K get serious & help resolve this DEBT!

[@myopinion4365]

Call me naive, but is that really how bankruptcy works? "I feel like it would take me too long to service my debts with my income, so I am not going to pay it at all by filing bankruptcy so that I get to spend my income on other things sooner" How is this NOT theft? They received the goods and services already that racked up the credit card, and now don't want to pay it... cause it'll 'take too long'". I honestly thought bankruptcy was for if people get in situations that they have no expectation of every paying off, not that they choose not to pay off.

[@allispossible8447]

My Opinion Some people use bankruptcy like it’s a trash bag.

[@shaldana]

I don't think that dude was too happy to hear that, for 4 years, there's no eating out, no vacations, no nada. They aren't gonna do it.

[@ibmtpx24]

Earning 85k a year and is surprised to hear that they can pay off 34k CC debt in a year? Maybe I am clueless, but sounds like another case of out-of-control spending to me. With 85k income and no luxury, living on cheap rent for two in Baltimore, I can pay it off in 8 months without getting extra jobs. The caller needs to realize how powerful focus and intention can do and have the balls to make debt-free their only goal in this stage of their lives. Paying off 134k debt would take longer but with the same focus they should aim for 2.5 year time period to put debt behind them, or 2 years with some side gigs (pizza delivery, dish washing, dog walking, uber/lyft). Or just imagine a baby is on the way and it is time to grow up and put their finance under control for baby's sake. Dave is too patient. But that's probably just me listening too many calls like this.

[@TeKnoVKNG23]

The issue is most of the time they aren't taking into account net income. Dave always asks about in come and people say "I make $50,000 a year." In reality close to 1/3rd of that money is coming out as taxes, deductions for healthcare, etc. In terms of the 85k, they really are only making about 60k a year, and then it depends on cost of living in the area, what their monthly mortgage is, other bills, etc. So in this case Dave saying live on 50k and spend the 34k to pay of the debt is so far off it isn't even funny. They don't have 85k of expendable income and I really wish that is something he would take into account because it is very misleading.

[@ibmtpx24]

TeKnoVKNG23 > Dave considered the tax. He is not born yesterday. Your criticism only showed that by your standard people cannot save 34k on a 85k pre-tax income, which tells me you have room to either cut back, move, or get your spending under control. Most of the time I think Dave underestimate how much people can save but I am fairly sure my 70% saving rate on pre-tax, sub six-figure income is a bit extreme. I am not even in debt. The spending habit reflects the way people process their wants and needs. In the US there is way too much wants.

[@scottecooke]

TeKnoVKNG23, I wish he would too, or at least clarify with the caller which one he is talking about. But in the end if they both pick up extra work it shouldn't matter too much. In fact it if you think about it if they are taking home 60k a year and they both get extra gigs then it would add up to about 4 years so maybe he did take it into account. But I wish he would clarify more often.

[@johntucket9221]

@@ibmtpx24 You make less than 100k and save 70% PRE-TAX? That is impossible unless you have somebody else paying your rent and food.

[@michaelweyenberg6238]

To do that, they would likely have to move. Downgrade in housing substantially.

[@1redrubberball]

I would never consider the path of bankruptcy unless it was impossible to pay off debt. It is popular to declare bankruptcy but it is quite often a dishonest thing to do. I know a guy whose wife left him a year before he was to retire. He had to live a very spartan life for 8-1/2 years to pay off around $180K-$200K with his $38K net retirement income. In my mind, thats resolve/determination!

[@michalstelmach4203]

Maybe she should get a real job instead of scumming people telling them about fairytales?

[@bhupesh0111]

Pastor preaching people and don't want to repay after usurping their money. Shameful!

[@aminamerchant2321]

he never takes into account realistic taxes or interest on the credit card

[@vanessahanible3464]

Amina Merchant he said work extra jobs!

[@michaelweyenberg6238]

The 90 hours a week of work should take care of those.

[@urano4810]

Interest and taxes are hardly the problem. I'm taking a wild guess and saying that it probably delays the plan by about 2 or 3 months

[@CFproductionsTV]

Makes $85,000 a year before tax, but Dave suggests he pays off $35,000 of debt, and lives off of $50,000 in one ear. Makes sense. DAVE NEVER considers/ accurately configure taxes.

[@lababyphilly9420]

Really? I live on $24,000 with a family of 6 in Philadelphia which the cost of living is pretty high so what your excuse?! Exactly

[@CFproductionsTV]

Zuki this cost of living in philly isn’t high at all.. and my point is that the caller said that he makes $85k a year BEFORE taxes.. so how do you live on $50k, and pay $35k when you don’t even have $85k after taxes.. it’s impossible. That’s the point. Lol I know it’s very easy to live on $50k, but after taxes he probably brings home $55k a year.. so it’s kind of hard to pay $85k in expenses, and debt, when you only have $55k to work with.

[@CFproductionsTV]

In philly you can find houses in the $100,000’s that’s DIRT CHEAP, compared to a NYC, LA, San Francisco, Seattle, Portland area.

[@legaleagle7184]

That’s a good scripture

[@PInk77W1]

Dave hit him upside the head with the proverbial 2x4.

[@PInk77W1]

My parents raised 8 kids with one car

[@lynny5510]

What advice do you have for those who have a criminal background and have hard time getting even one job much less several jobs to pay down debt? I keep hearing get multiple jobs to make more money. Criminal backgrounds keep people from delivering pizzas and working at starbucks etc. Any advice for those in this situation? Thank you.

[@angelrodriguez6973]

Start you own Business

[@levigoldson]

Has there ever been a call in the history of the show where Dave recommended considering bankruptcy under any circumstance? If anyone knows the video I would love to see it. (if it exists).

[@ittakesavillage5461]

Jeffrey Basurto yes. I have been listening for a few years and I have heard it a few times.

[@missdee212]

Bet this guy didn't follow instructions.

[@kevinseveneleven]

missdee212 yep. His reaction when Dave says you can pay that credit card off in one year! Haha he's in disbelief

[@stereomaster4231]

I’d say less than 1/3 of the callers follow his advice, even loosely

[@PInk77W1]

Blue BMW but there are 1000s of listeners who do

[@ivettecruz8970]

I can’t believe someone told him to file for bankruptcy I paid off more debt then that making around the same income in one year and I have 4 kids and 2 of them are twin newborns so I had to pay formula and diapers.

[@earlg1094]

pay the student loan off with a credit card and then file bankruptcy

[@AslansMane88]

Earl G So transfer the loan, with intent to rob a credit card company of their payments? Moral high ground right here, people!

[@stephon972]

no its not its all on paper. You think they dont already know people will try this. I mean come on these people were not born yesterday

[@Gabster1990]

If this is the definition of a good bad idea, I nominate this comment.

[@Taj-Mahal]

hmmm..thats an idea! 😊🤓

[@bestly802]

Credit cards are not an option. They ask you to link your bank account when paying off your loan. At least that's how I remember it. You can't put 100k loan on a credit card either unless you're a millionaire with a credit card with unlimited credit. It might be doable if you have a small student loan of like $5k-10k and you use your 15 credit cards to cash advance. But it's pretty stupid to go bankrupt over a $5-10k loan.

[@jborrego2406]

I bet the wife will make sermons on giving more money to church. Every church I went to they talk about giving 2 time month oh an tax session u need give more An close to there Birthdays and anniversaries lol like we know where the money going

[@LordTrayus]

What stupid financial advisor recommends bankruptcy on $134k of debt on $85k of income? At best, that's 5 years if you put $30k in it every year

[@matty2time]

They went bankrupt

[@nordikcajun5417]

He said I understand, but he doesn’t want to pay cards. He want bankruptcy 😂😂😂

[@rhondawiggins5728]

You’ve changed my life.

[@cm5394]

Over 100k in student loans to become a pastor. Probably thought god would handle it LOL

[@egobaby4246]

Their main problem is his wife is a preacher. What a curse upon them!!!

[@MsYerlingM]

'The best raise you can give yourself is getting out of debt" - This is so true, it feels like i got a million bucks raise now that i paid off my 24k of credit card debt in one year. It takes work but its the best thing you can do for yourself!

[@mapyarg3891]

Wow@the judgmental comments.

[@tonyahenry4167]

He will have to pay the loans regardless ....1 year if he takes the advice

[@marthafazzini9835]

Stay away from relationships like the one my MIL and FIL had with one of their DIL’s. Nina took em big! 300,000 or about. Refuses to acknowledge this or repay!! $300,000 •10 years= $30,000. $30,000 •12 months=$ 2,500.00. $2,500.00•30 days= $83.33 per day. She Can and Should pay my 81 yr old FIL Back!!!!!!!

[@catlover1986]

The only thing is, student loans can be bankruptcy eligible, if income is very low after several years. Theirs is obviously too high to qualify. The only thing is, some credit cards have like 30% interest. You have to pay $10,000 a year in interest before paying off any principle. That can be very difficult. But their income seems fairly high.

[@hustlehard4L]

Man....I felt him get humbled over the phone

[@PhotoPhreak17]

“Financial advisor”. Can’t believe that. He clearly wasn’t looking at the numbers.

[@necodocfox6536]

I don’t understand why is it not preferable to file bankruptcy in the US? What would happen after that?

[@tonythaiger93]

In one year? @,@ whaaaaaa LOLLLL

[@jillstover8782]

He is not gonna do the pay off! He is in denial

[@AntiMasonic93]

This caller is talking about bankruptcy but, student loan debt is non dischargeable.

[@jborrego2406]

It scares me ppl with good pay jobs can’t pay debt an I make half of this pay

[@supremevision631]

Stupid,000,000

[@Michaelsmith-np2nv]

Thank God that I learned at a young age not to get in to using credit cards and borrowing money..

[@BCNeil]

Sell the cars.............with that income, debt should be gone in 4 months.

[@yonavoss-andreae4952]

Declaring Bankruptcy: a fun weekend activity!

[@twinny555]

He didn’t sound ready

[@jjb0894]

Bankruptcy is a last resort, not the lazy way out of debt.

[@MegaTeeruk]

Are there pastors who don't speak?

[@samassefa8579]

“No vacations??”

[@isreal73holmes50]

Rice & beans my friend!!

[@alfienykabutler5919]

If the church is a body Dave is the coin purse!

[@natachaderilus6493]

Wow, whoever brings this idea is good.

[@natachaderilus6493]

Wow, whoever brings this idea is good.

[@JohnDoe-du1no]

No debt relief for you

[@KarmaHipster313]

He Black!

[@scottstewart8737]

Dave ignored the interest on the credit cards, and taxes on the income. Happens all the time

[@PInk77W1]

Very few financial advisers in the world Will ask u how much your cars are worth In the first five minutes. Dave is unique.

[@billgateskilledmyuncle23]

I have 5 dollars in debt and make 100k, I'm thinking of going bankrupt.

[@beedee9534]

This guy was alright but after i seen this video im gone from this guy he a phony lawyer

[@mdooms76]

Unrealistic advice! You can live on nothing and $35k is still not getting paid off in a year! $80k combined is $40k each, roughly which is nothing after taxes! Even if you don't eat out or go anywhere, you can only send but so much to a debtor because of basic living expenses. They would need to pay $3000 a month, not counting interest, to pay that in a year. With an $80k combined income, $3000 is about their take home pay combined after taxes. Dave always makes it sound so easy but it's not realistic math wise. The money is not there.

[@ominous450]

I️ could see myself marrying a godly woman but I️ couldn’t be married to a freaking pastor

[@bonniebrown1305]

ominous450 Why?

[@BassPlayer60134]

Considering over 90% of the worlds’ church bodies don’t have women pastors and none did until recently, the idea is somewhat shocking to those of us unfamiliar with it.

[@DrKeef]

No such thing as a female pastor tho

[@lenas5613]

Wrong!!!

[@streetnic1665]

She's not a pastor. Women are not qualified to preach to the congregation.

[@stereomaster4231]

TrustInHim123 oh boy...imaginary restrictions on imaginary beliefs. Get me some popcorn while we debate this one!

[@hitchjack]

😂

[@Simply.Homicide]

agreed!!

[@Stompajiggayo]

Baltimore clowns be like" bogo boga gibs mi bankruptzy!!!"...

[@ocky88]

You really thought that was a smart/clever comment, didn't you? It might have been poignant if 90% of Dave's callers were not white americans in worse shape than this black caller.

[@Simply.Homicide]

@@ocky88 yeah he is a complete idiot

[@KManwarren]

This was great advice! He helped this couple dream and realize the life of peace that God wants us to have. Very cool!

[@JayTarsia25]

A female pastor? Lol That church is doomed.

[@joshuas.169]

First!