I Have $70,000 in Credit Card Debt!

carrie is in dallas texas hi carrie happy new year hey hey dave happy new year to you too and thanks for taking my call sure what's up um okay so um your problem child i have lots of credit card debt um to the tune of 70 thousand dollars in credit card debt and yeah and i um you know purchased my first home um four years ago almost and um lots of things went wrong um uh with it but that wasn't all the debt and i was given advice from a friend a year ago to just stop paying the credit card debt they were all zero percent and all the interest rates started i knew they were about to skyrocket and it was going to get to the point when i couldn't even make minimum payments anymore and so they just said quit paying just stop paying and i did try to call several of them and they weren't willing to negotiate anything with me they they didn't want to talk to me because i was current on everything yeah and i had always been of course so now they're all coming full circle all right i'll tell you what hold on we come back from this break we'll get the rest of your story and see if we can help you we're talking with carrie in dallas texas she ran up 70 000 in credit card debt as the interest rates went from zero to full blown as they always do she was unable to make the payments her friends suggested she stop and that's about how far we got in the conversation what else is going on miss carrie yes sir well i started working your program last month i reached out and a financial advisor found me and we've already met she's got me on a budget um she i've done plastic surgery i've done all her homework we're meeting friday again for the new update things are actually going great i was going to say you actually while you're out of control you're starting to feel in control i'm more in control i mean it's the first time i've ever been on a budget before um i i checked out every dollar but i think with all this default debt i felt that you need a budget or y in ab.com uh was better for me i don't because of all this unknown i don't know i don't know um you need to get on every dollar okay yeah it's going to be much better you just need to run two debt snowballs as well okay so i've got all my default debt um i settled or i just settled and paid two of them i knocked two of the cards off myself i got summons for two others through the same collection agency or law firm and i did get a lawyer for the first one and could kick myself because i realized i could do it myself um so we he settled for me on the first one and then i guess it gave me the template to know how to do it um so that's what i paid for but i settled the second one my question is um on the debt snowball with those they're gonna be coming at me you know the different amounts are coming at me and once it goes i get a summons i've got to settle those out no you don't so i don't okay um they can show you they can show you but in texas they really can't do anything well i thought they could get control of my bank account which would be not in texas um not in texas i thought i they can't can't garnish your wages well you don't need that you don't need to give them your bank account information right well i figured i could just switch bank accounts if that were the case yeah okay yeah so okay we're not gonna let their we're not gonna let them create the emergency we're gonna let you create it so all of these this entire 70 000 is in default yes sir okay and what other debts do you have i only have my um my home loan which i owe 178 on that are you current car i am current i'm current on everything else the car 707 000. perfect my income is 78 000. okay and i'm also working i've been doing ubereats on the side delivering um and i was able to pull in five hundred dollars last week so way to go um i'm planning to just keep attacking that as well you're inspiring i mean you're inspiring you made a huge mess and then when you decide to do something about it you got a template from the lawyer you met with a financial advisor you're working your plan you picked up an extra job you made a budget you're doing everything you are really on fire i'm so proud of you for what i do so i am and i just want to keep this fire and take care so as you got as you get little summons if you want to stop and settle those that's fine but if you get one that's a huge one just let it sit there's one coming up it's like 8 000 you know 8 200. and i told them i spoke with them on the phone and she wasn't willing to talk to me without she wanted me to make a good faith painter so we're not doing that today um i just need to know what you would be willing to settle for so i can you know plan for that and be able to give that to you in a month or two and she goes i can't do anything with you right now you know then hang up and so i said go ahead and slam the phone down just for the satisfaction just for the satisfaction the woman is she's going to act like she's a test pilot for a broom factory treat her that way okay that was her decision not yours it's not you know that's all a technique that's called intimidation and don't don't let them do that to you you got a plan you're on fire you got a system and so what you're gonna do let me here's what's gonna happen okay you have three different uh summons and or collectors coming at you and you have two thousand dollars sitting there this is in the future this is in the future what you're gonna just you're gonna mess with every one of them you're gonna go i got 2 thousand dollars who wants it first if you take it you will get that as a settlement on eight thousand dollars that's behind door number one if you don't then we're gonna go to door number two and whichever one of you calls me back first that's who's getting this money i'll get back to the rest of you later when i got some money and this is a game show baby you know and just have some fun with it right and then you know how to settle it you've got the template to do that get it in writing and do not allow them electronic access to your checking account that way they don't know where the flip it is right and they don't clean you out on the rest of your plan but i did settle on this law firm i did the two that i settled on i do not need to pay online or anything like that or because it is in a settlement am i safe to just go online and pay them or do i need to do the cashier's check every time online means they have your bank account information yeah i would think they would do not do that don't do it okay no okay that's what i thought i just wanted to add because they they it once they have that if they're unscrupulous and some of them are they can turn around and clean out your bank account okay so you're to get around to working with everybody we're not trying to ditch them we're not trying to be a deadbeat we're just not going to be abused and we're going to play them against each other until we get through this so i need to start with my default debt snowball smallest to largest on that i do have three cards that are current um i'd knock them out if you can't get a smaller amount i'd knock them out first yeah go ahead and knock them out you know again i thought that my advisor was saying it's telling me different well normally normally what we tell you what your advisor was trained to do and normally what we tell you is run two debt snowballs run your current stuff and pay it off first and let all the stuff that's in default just sit and once you've gotten rid of the car payment and the three active credit cards everything but your house then that gives you more cash flow to deal with the stuff that's in default that's our normal routine you've got a few of them coming at you right now and so if you want to uh kind of dodge around a little bit head fake and jump in and out of that and jump over and knock out one of those summons that's okay there's not a bad thing here okay what i don't want you to do is i don't want them threatening you or giving you a hard time or bossing you around to become the priority instead you set your priorities you have power over money for the first time in your life carrie use it right you make me don't worry about them taking me to court then because sometimes that's you feel pressure to settle nope before court we can settle after just as good not worried about but i thought that they would do the full amount plus court costs well they will but we're also going to negotiate that down to 10 cents on the dollar okay and they're gonna be happy to get it junk debt it is junk these aren't junk debt it is junk debt it's a credit card that's in default it's called junk debt okay that's what it is because they all say they're representing the card itself it's still well i don't give a crap third party they either own it or they don't but when they get ready to sell it they're going to sell it for a nickel on the dollar right and so that's what it's worth to them it's junk debt it's it's it's almost a year since they've been paid they have their probabilities they know their probability is almost zero it's five percent chance they're going to get paid and the fact that you're working with them gets them all excited you actually have a phone number that works everybody else in their database doesn't i mean that's who they're dealing with and so you're you're like a unicorn for them they're so happy to talk to somebody to abuse you so karen is great craig carrie you're doing great listen if you're not in ramsey plus i'm gonna put you in it hold on kelly pick up and make sure you're tied into that because you were doing everything right to straighten out your life you are doing a full reset

Channel: The Ramsey Show Highlights

Views: 461,120

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, I Have $70, 000 in Credit Card Debt!, credit card debt, debt, money, personal finance, how to pay off debt, credit cards, debt free, credit

Id: X-SIBqzgJu4

Length: 10min 40sec (640 seconds)

Published: Wed Jan 06 2021