I Have $80,000 In Debt and I Only Make $19k A Year

starting off this hour is going to be Houston Texas Roisin I as weather Saira Sheena how are you I've been better day oh what's going on I hate to use this term but I'm drowning I've been reading your books in your program for the last couple months you know what I could get at the library and watching your videos online but everything's kind of come to a head and I'm losing myself so a bit a lot and I'm not sure what to do I'm considering bankruptcy at this point not sure if I'm supposed to go back to school I just honestly don't know what to do right now how old are you I'm 28 and how much do you make a year at best I make around 19,000 what do you do um right now I'm a substitute teacher okay you have a teaching certificate no I owe a debt that's actually preventing me from getting a certificate so I understand Oh a college in order to do the teaching program in Texas you have to have all your transcripts but because our school they won't release it and they won't let me go with the transcripts I have digestion and how much do you owe them I owe them around 1,300 1,300 dollars yes okay and how quickly would you land a job were you to get your transcript do you think I'm pretty quickly I spend something I know this is going to sound so silly but I've been something for about four years the thing is the money's not constant I'm not working doing the funds I don't work doing major holidays so do you live on your own yes you're barely making it aren't you kiddo I'm barely making it all so much student hold it no much loan debt do you have like not counting us thirteen hundred Oh 60 mm hmm yeah it's overwhelming making 19 and what other kind of debt have you got I have confirmed that I've taken out I know some super diseases are taking out on payday loans I have a card note that I repossessed last year they want 12,000 on it and I have a little car loan because I couldn't take cash and so I'm paying back to how much do you owe on that hour the one right now on five grand how much is your payment I'm 200 okay all right well let's walk through this for a second okay if you were to file bankruptcy a chapter 7 bankruptcy is the type of bankruptcy that cleans off all your debts okay student loan debt is not bankrupt a bowl so a bankruptcy would not clean off the sixty-two thousand it might clean off the 1301 I don't know that sounds like that's a private debt and that one might be cleaned it would clean off your old repossession it would clean off the payday loans it would not clean up the five thousand dollar debt on the car unless you turn the car in you don't get to turn you don't get to get rid of the debt and keep the car you follow me yes sir so you either keep the debt and keep the car or you turn the car in and can get rid of that debt okay if you want my opinion I don't think you have a debt problem as much as you have a huge income problem I definitely agree with that if we if we could increase your income ten fifteen thousand dollars a year you still wouldn't be making a ton of money but it would change your life right now because let me kind of give you this number okay thirteen hundred changes your income because you get the transcripts back five thousand gets rid of the card how much is only stupid payday loans why I only took out 800 but as you know the interest rate how much is how much you owe on the stupid payday loans um 1700 now okay so let's do this math $8,000 1700 there 1300 at the College 5000 on your car changes your whole life yes sir that makes sense yes 8,000 bucks and then you've got a student loan that you're gonna have to work your way through but you've got to work your way through that anyway you're not getting away from that one and you've got an old repo of twelve thousand dollars that you probably could settle for a couple grand so 10 grand cleans up your entire life and makes it awesome not counting the fact you got to fight through 62 thousand dollars or the student loans so you know that tells me that you really don't have a bankruptcy problem you've really got a I mean a debt problem you got an income problem so well you owe much is your rent 600 okay I'm not okay and so here's what I want you to have you ever waited tables or delivered pizzas I wasn't when I was a teen mm-hmm okay and you're 26 you said 28 28 okay all right what I would tell you to do if I woke up in your shoes knowing what I know and see I don't have all the emotions of being overwhelmed and scared I'm just looking at the math so I've got an advantage right now okay you've got the emotions of being overwhelmed and scared I'm just looking at the math and that gives me an advantage I'm outside the forest so I can see all the trees you're following me yes I get that you're overwhelmed and scared but I can tell you how to fix it I mean if I were you I'd start working about 80 hours a week 90 hours a week I'd be delivering pizzas and waiting tables and whatever else you can come up with to make money tutoring I'd be tutoring model but off and a lady was on her last hour making 30 bucks an hour and Charlotte tutoring as a teacher and that's how she got out of debt 30 bucks an hour would change your life you know pick up three or four kids pick up three or four places you can wait tables and pick up pick up an odd jobs doing whatever I don't know what you can do this legal and moral but I want you to go make an extra two or three thousand dollars a month but you know I'm no life you can't breathe you're so tired your nostrils hurt you follow me you know what to worry about though you won't die from hard work right before you die you'll pass out you'll be okay you follow me yes you need to work your butt off your fingers to the bone and go make you ten thousand dollars in the next four months Christmas I want you debt-free except the student loans and the car repo you get your transcripts back you get the payday lenders out of your life don't you ever go in one of those places again they're killing you and get your car paid off and then you're gonna have a life you feel it okay you can do this I'll walk with you you call me back while you're working on it and you and I'll do this together and you hold on I'm gonna put you through Financial Peace University to get a community in your life where you can walk through this and get it done you got this kid you can do it but it's gonna you just need a little bit of money and a way to get that's work like a crazy person hold on Kelly I'll pick up hey guys thanks for watching if you enjoyed this video click the subscribe button to get the latest content and check out these other great clips from the show you [Applause] [Music]

Channel: The Dave Ramsey Show

Views: 906,232

Rating: 4.8942528 out of 5

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Id: PsbQYwbPaGM

Length: 8min 19sec (499 seconds)

Published: Sun Aug 27 2017