Tony is with us in Baltimore. Hi, Tony. How are you? I'm stressed, Dave. Uh-oh! How can I help? All right, so here's the deal. My mother-in-law is the cosigner on my wife's student loan and her car loan and we're trying to to follow Baby Step 2, my wife and I did FPU, and we're both working two jobs. I'm driving Lyft even though I have a salary, but, anytime we don't pay on the student loan, my mother-in-law pays on it and we catch the backlash because she doesn't tell my father-in-law. Why wouldn't you pay on the student loan if you're banking on, if you're out there working your butt off working Baby Step 2? Well, it's a little bit further down. I've got a bunch of medical debts and a bunch of stuff for my first marriage as we're going by numerical value. No, I didn't tell people to not pay the bills in the Debt Snowball. Well, it's below the line. Right now, after we pay rent, after we... You don't have the money to pay all of your bills. You're not in Baby Step 2. Okay, yeah, that's where I'm at. You're in Baby Step 0.5. Yeah. You got to get current on everybody first. So, what's your household income? It fluctuates. I'd say between $80,000 and $90,000. Okay, and how much is the student loan debt? $80,000. Good, Lord! And how much is owed on her car? $6,000. I'm actually paying $200 a week on that to get it paid off faster. Good. That's going to free up some room. Wait a minute... You're paying extra on it? Well, I'm paying $200 a week. Is that the normal payment? No. So, you're paying extra on it? Yes. Meanwhile, not paying the student loan on time? Yes. Wrong! So, first rule is let's get current with everyone before we pay extra on anything. Okay. And, I don't blame you for wanting to get her out of your ear, and I'm trying to help you do that. Okay? So, you have $6,000 and $80,000, and what other, you got medical bills. How many medical bills? I lost count. I didn't have health insurance when I was younger. Oh, Lord. And is a bunch of that in default? Yeah. Have you got a bunch of it on payments, or are you just paying it as you can? I'm paying it as I can. Okay. How much total is that? Uh, I believe my wife figured all of that out, I didn't... I don't have it sitting in front of me. Well, give me a guess. $20,000 or $200,000? I'd say about $20,000. It's it's a lot of little stuff. Gotchya. A lot of little ankle-biters. Okay. What other debts? (inaudible) I owe $7,000 on a car that was repossessed when I was younger. Are you paying anything on that? Not right now. Good. Okay. Don't. Not now. Okay, the medical bills that do not have any payments on them, that you haven't worked out a deal with, don't pay anything on them. Set them aside, set the repo to the side, for now What other things have you got? Uh, we owe 'bout $6,000 on my car. Okay. So, $6,000 each on two cars, and you're making $80,000. Good. Did you say you met your household income is $80,000? Give or take. I mean, my wife's a server. Okay, and how much is, uh, and how much is your rent? Uh, $1,150. Okay. You guys need to do a written budget and YOU need to personally get involved and see the numbers in the budget so you know what they are and can answer any questions when you and I talk again. Gotchya. Okay? You need to get more involved, because she's carrying all the weight of this by herself and she's having a cringe every time the phone rings and the ID says her mom's number. Yeah. So, you guys make enough to pay minimum payments. If you don't pay anything on the medical bills, except what you've already agreed to do, and you don't pay anything on the repo right now, and you pay the student loan minimum, and you pay the car payment minimums. You make enough to do that and eat, and still have money left over to start working your Debt Snowball. Gotchya. So, get current, stay current. Then let's save a thousand dollars. Baby Step 1. I got that. Okay. Do you got more? Uh, we capped it at $1,000 and we kind of refill it. I'm in the middle of a custody battle. Okay, alright. Do you have any other money in any kind of investments? No. Okay. Alright. Good So, let's, uh... ...pay minimum payments on everything. Walk through a bunch of those ankle-biters. Any of the medical bills that you promised to pay, knock them out! The ones that you're not paying anything on, set them over on the side like I said, okay? Then let's clean up. Let's clean up the medical bills your paying payments on, the two car payments, uh, first, then you stay current on the student loans, then we'll go and do settlements with those old medical bills, and that old repo. You can settle that old repo for about $1,500 bucks if you negotiate it. Be sure you get any settlements in writing, and be sure you do not allow them to have electronic access to your checking account. So, there you go. Get after it, dude. Hold on I'm going to send you a copy of the book the total money makeover 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!
