“We May Not Be Able To Help You”

[Music] brought to you by the every dooll app start budgeting for free today so I'm just trying to get some advice um with my trying to buy a house in about February March 2025 um I make about uh 68,000 a year I am a single household um no kids no signic other um and I because of the financial economy right now it's not an option not to buy um because Rising rents so I'm preparing to buy next year um to also take advantage of a $20,000 grant that can be applied towards principal um or closing costs um my situation or my question rather is um what to do with some extra money my parents are uh taking out a HELOC loan um to pay off my private student loans um please don't do any of the things you're doing Megan is this already all the things you're saying please don't do any of these things it's already in process so without the student loan I will be able to buy but with the student loan my minimum payment for it is $722 and I already talked to a realtor and they said um I maybe could get approved for $100,000 house which is nothing um he said it's not impossible but he was like it would be very very hard to find a house um so all the documents are already signed and everything for the helac um and it was it would free up uh $455 out of my monthly payments I know but it just put your parents house on the Block and so whenever you buy a house make sure you've got space for them to move in with you someday CU their their chance of retiring just went way down man okay you already are retired I want to go back to the thing you said earlier um I I in my initial gut reaction to you had some thing about rents are going up so it's just it there's it's there's only one path forward anytime somebody says there's only one path forward there's only two options I always want to just pause and completely clear the deck talk to me about that CU I so I would rather like just listening to your story I would rather if you were my sister you were my kid you were one of my best friends I would tell you dude don't do any of the things you're doing move in with your parents if that's the option moving with them for a while um talk to me about how is just simply zero you no chance no how can you rent a house for a season or an apartment I am renting right now I renting a one-bedroom apartment for $1,000 okay um but rents are continuing to Rise um my parents live in New Jersey so we live in totally different states and the job market for my field is not there um so what's wrong with paying a th000 bucks for rent making 68 that's not the problem here no if it would stay a thousand that would be great but let's say it goes to 00 still not a deal breaker 1500 it's still not the thing that's holding you back no so the my issue is if rent keeps Rising it's going to lower the amount that I can save for a house and interest rates going up it's going to get to the point where I'm I'm too underwater to even get a house do you have inside or knowledge that interest rates you're going to continue to go up I don't but she knows something you're on the you're on the internet so so much um here here's here's the deal we we may not be able to help you cuz it sounds like you got this all figured out I I would tell you just as a guy that's owned a bunch of houses and a guy that um had to go see a doctor because I was so catastrophic in my future predictions and by the way they've all 100% of them I've been wrong on all of them um I want you to solve for peace not for for Imaginary catastrophes that have or haven't happened yet are rents going to go up yep that's the way rents work especially in a culture that refuses to build new homes it refuses to build new houses to let people build so yes rent is going to go up is it going to go up to the tune of putting your parents' house on the Block no it's not even if it went up 100% and your and your rent was $22,000 you can still afford that somewhat comfortably on your salary annoying but somewhat comfortably and I don't believe that interest rates are going to go up and definitely from Now and Forever Until the End of Time um what we're saying is this desperation is going to lead you to make a rash and poor decision when you're not ready for it so how much how much debt do you have I have about 115,000 um including that 48 from the private loan that's getting paid off so even with your parents taking on this Hew you're still going to be left personally owing $80,000 yes the one student my federal student loan is in deferment until 2026 um I have a $25,000 car loan left and a $5,000 um personal one what what what career field are you in uh like Social Work Care Management okay um I used to teach graduate counseling courses okay middle professionals and I've had to have this terrible uncomfortable awful conversation and that is with particular students in particular situations I believe you when you tell me you were put on this Earth to sit with hurting people and to figure out how to support and love hurting people in our communities the least of these and how to navigate the messy systems that they have to navigate and I'll also tell you I told my students it is unethical for you to stand up in front of people and help them and at the same time you be so terrified that you can't breathe because of how much money you make and so at some point you you may have to say okay either I got to take a second job for two or three years until I can write this ship or I'm going to have to go get a different kind of job and put my my calling on hold for a season because I simply can't afford to live in the place where I want to live and do the job that I want to do because it sounds like I have a second job okay yeah that's what I was you were going to say that you You' you're already ahead of me here's my fear your biggest war is against math and it's not going to change and you owe 150 Grand and your parents are going to are going backwards to help and you're going to go backwards to help and you're going backwards to try to get you see what I'm saying it's just this you're just you're in a car and the and the wheels are spinning and I'm only telling you this because I love you and I just don't want to see you go so deep I want the world to be able to experience your help as a trained social worker cuz we need you but you can't breathe right now right it's I'm I'm living comfortably where I am like I said I just um because I I have my total expenses monthly is about 3400 and I bring in a little over five that all needs to go to the debt what's your what's your car payment go to debt 575 what's your personal loan payment 205 okay I just added that up we're talking $1,400 in debt payments $1,000 rent is not the problem you could free up $1,400 if you got aggressive at this debt hang on the line I'm going to send you a copy of my book Breaking Free from broke I want you to read it all the way through and send me a DM and uh let me know if that helps and if we can help in any other way so hang on line we'll send you a copy of that book wishing you the best create your free every dooll budget today the simplest way to budget for your life

Channel: The Ramsey Show Highlights

Views: 166,345

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball

Id: F-uN4pf6NIE

Length: 7min 57sec (477 seconds)

Published: Thu May 16 2024