I'm In A $451,000 Financial Mess!

Mike's in Philadelphia welcome to the Dave Ramsey show Mike and then what's on so a co-worker introduced me to your show recently and I really intrigued and I gotta say I need a lot of help I'm 451 thousand dollars and then total debt two hundred and fifty two thousand of those student loans and I have one hundred and eighty five and a home loan and I only bring in seventy thousand a year after pension and all SF taken out it's more like forty thousand I just don't even know where to start what do you do for a living the law enforcement okay and how do you get two hundred and fifty two thousand dollars of student loan debt to be a policeman I went to a private institution because my mother wanted me to go there to be honest with you I went there originally for finance and I didn't do good at finance so I switched my major to criminal justice and then I eventually went on for our masters for it as well which didn't really help my employment eligibility as much as I thought it would mhm okay is your mother wealthy no hmm no my mother and normal father I'm the first in my family to go to college okay well we always look at mathematically and you were in finance so you know what to do with this is I'm always looking at the ratio of what we call shovel to old the amount of hole that you're in versus the shovel that you have your income the debt you have to your income are you married no I I do have a girlfriend who lives with me and her daughter as well mm-hmm and what is this house worth that house is worth I actually just purchased it and I even uh you know I purchase in September kind of a little whim my father passed away in July and it was the last conversation we had it was actually across the street from his house and he really wanted me to get it so I kind of you know jumped in both feet I guess to honor him you know and so you didn't put anything down so the house was worth 185 yeah yeah and you're how old I'm 31 okay so when do you plan on marrying this girl she's currently in school to finish up for a nurse practitioner school so I would say maybe sometime after that that should be done hopefully after January mm and does she have student loan debt she does how much I'm not sure because she's not really on board with all this she can't I tried to bring this up to her when listening to your show recently and she's sort of thing as I'm too busy with school and don't want to worry about that right now yeah well I think you're the voice of experience that says it's a good idea to worry about it otherwise you end up up a creek which is where you are right now and your paddle is real small okay well let's look at this a couple ways how old are you 28 I'm 31 31 okay you and I haven't been friends long enough for me to be as blunt as I'm about to be but I'm gonna tell you anyway okay I'm gonna risk our friendship and just tell you the truth okay told me in a five-minute conversation of two really stupid financial decisions you made from the influence of your mother and your father you bought things you couldn't afford with money you didn't have both because of influence of those two at 31 years old you were going to have to decide to love your parents but no longer be influenced to do financial decisions based on their opinions obviously your father's got to Seoul this past but even your perceived opinion of what he would have thought you cannot please these people anymore they are breaking your but you make seventy thousand dollars a year and you're so far in debt you can't breathe dude buying a house you can't afford and go into a school you shouldn't have gone to and paid twice or three times as much for an education the most of which you didn't even need to do the job unit you do am I wrong right no okay no all right and so number one that influence has to stop number two you can't afford this house as a single guy making seventy thousand dollars a year you cannot afford a hundred eighty five thousand dollar house making seventy thousand dollars a year as a single guy with to my girlfriend's bring in about eighty nine yeah well that doesn't count and you're not married and if you're gonna get married you guys are gonna have to get on the same page financially because the number one cause of divorce in North America today's money fights and money problems and she's not even willing to talk about money so we're not willing to talk about marriage until we're willing to talk about money because you're gonna get divorced as soon as you get married that's what happens to most people it is the number one cause of divorce how long you been on the force for years okay when you go on a domestic call what are they fighting about money okay tell me I'm wrong all right this is what's happening and it's dangerous call for you to because people are crazy Oh Lord so yeah you guys have got to sit down and go we can't keep this house unless we're getting married and we're not getting married unless we're not get on the same page about the money and we can't combine our incomes with people we're not married to you can't go paying her debt she can't go paying your debt and this house it and hers it's yours it's not in her name it's in your name so either we let's just go ahead and get married and combine everything and attack these two student loan debts and try to keep the house or let's just call it a day and get rid of the house and then you guys figure out what you're going to do with your relationship and stuff later go rent something or whatever you whatever you're doing before but but you you know so several big issues I've already hit on real hard number one we can't afford a house number two you guys you need to be real careful about pursuing a long term relationship until you get on the same page about money number three unless you're married you can't afford this house that I mentioned you can't afford this house and then lastly we got to do everything we can to get your income up with side hustle side gigs and you can get all kinds of OT in the department right my department not so much I don't have to actually go and have to go outside of my department okay they allowed you to do side work though yeah yeah and that's good money right now security is what forty fifty bucks an hour right particularly yep private security yeah and you need that money cuz you're broke so income up out go down get real focused and real narrowed in your decision-making so that you can clean this mess up because what you've got in front of you that's 252,000 our student loan debt with seventy thousand dollar income is is a mathematical nightmare so we got to get your income up over a hundred I'm gonna guess and say you guys get married and we're probably dealing with almost a two hundred thousand dollar income at that point when the two of you are going right and but I'm also gonna guess she's got a big butt Paula student loans too so I'm probably dealing with four hundred thousand dollars of student loan debt at that point so probably you still can't afford the house you're probably still going to rent something cheap and you're not gonna have any life for a while because you both have made a big hole that you're in and you can't get out of a hole when you're digging at the bottom so this is going to be very tough for you Mike you got a lot of influences in your life that have all brought bad decisions so those influences have to stop and then you've got to undo some of these bad decisions or correct course correct because five years from today if you keep doing what you're doing well Bobby you're but a slot Center and five years from day you're gonna be bankrupt you're heading straight at the wall with the accelerator on the floor that's what's happening right now mathematically that's why you called me I'm not picking on you I'm just saying you have to turn the wheel you have to turn the wheel and you have to let the foot off the accelerator that's all this is hold on I'm gonna put you and the fiance through Financial Peace University so that you guys can learn how to handle money hopefully together and hopefully we can salvage your relationship

Channel: The Dave Ramsey Show

Views: 557,347

Rating: 4.8356409 out of 5

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, debt, student loans, money, dave ramsey show, student loan debt, dave ramsey live, loans, dave ramsey student loan debt, dave ramsey student loan, in debt because of parent's influence, parents

Id: 8GTrcB5_dXk

Length: 9min 23sec (563 seconds)

Published: Tue Apr 02 2019