Still In Debt After 5 Years

Shantay is with us in Detroit Michigan hey chantek how are you hi Dave how are you better than I deserve what's up great thank you so much for taking my call I'm calling in because I've read the Total Money Makeover I've gone through FPU and I'm still in debt after five years and one because I think we definitely need more income coming into our house okay what is your butcher what's your household income $50,000 okay and how much debt did you have when you started oh I don't remember because we actually did a bankruptcy and so everything was wiped out except for student loans mm-hmm how much loan Delhi how much how much debt do you have now 70,000 okay and you make 50 okay and the 70,000 is what all student loans no 55 of it as student loans what's the other 15 we owe 2500 left on our car a $300 a credit card we weren't able to pay our insurance a week-old them and we're behind on our electric bill $2,500 I'm still not gotten me anywhere near 15 yeah I don't medical bills as well we've had two two kids and between there okay so you're not living on a budget you're not living on a plan no we are the living on a budget I do a budget every single week why would you be behind on your electric bill because I don't I don't understand you know what's going on I don't I don't know okay are you married yes okay does your husband participate in this discussion not really I keep asking him to you know sit down do a budget with me if I okay I trust you is your rent we own our home how much is your payment it's paid until it's paid off yeah and you make $50,000 a year and he got behind on your electric bill exactly I how would you possibly have a wine my limit you don't have a plan because no one would plan to have a paid-for house and be behind on their light bill that had to be done but disorganisation yeah I mean that that can't be an intentional organizational act to intentionally be behind on my light bill well that would be one of the first things I mean so let's do a budget okay let's lay down what your income is which is you know you make about $4,200 a month gross which means your take-home pay should be in the neighborhood of $3,500 okay that should be what you have to work with a month coming home well it's more like um six it's more like wait six hundred times three and then that's like you know it's more like 3,000 maybe 2500 in luck I don't know why it okay we don't know how in our income is so you're not doing a budget you didn't tell me the truth I know I know it per week I just don't know it all together I don't ever do a monthly when I do a weekly one right well you're supposed to be doing a monthly one and ER and the way you have to do it monthly and you have to do it weekly okay the first thing you buy out of your budget is food right the second thing you buy is utilities uh-huh before you do anything else the third thing you buy his house payment you don't have house payments all you've got insurance and taxes to keep from losing it okay and and so all you're doing is you're making a solid list here of where your money is going to go every week and you make the money go that way and you grab a Bubba by the ear and you drag him to the table and sit him down and say man up I need some help I've been working on this five years I feel like a rat in a wheel and I need your help we're going to work on this together we're going to fix this okay all right because you know you're not making a ton of money but you're like you said you're getting further behind in the reason you're getting further behind is you haven't done any of the things we taught you in Financial Peace University oh you're not doing your written budget you're not working together with your husband you're not prioritizing your spending I know this because of the the data you've just given me in conversation I'm not fussing at you but I'm coaching you uh-huh you called me so you knew this was coming I knew even get it to feel like it like a new here so that's fine I'm sold I got my arm around you but I'm gonna take your bud okay you know what we keep having vehicle issues too that's another thing unexpected that you know because we have a $2,500 truck that we keep having to pump money into the other vehicle that we're still we still owe money on the engine doesn't work so we can't even use it but we're still paying for it we need to develop a game plan for each one of these things and start addressing them as we can address them as fast as we can address them but you don't ever need to be behind on your food or your lights again when you make $50,000 a year and you don't have a house payment ever I don't know how to get caught up on it now like I said how much do you owe me five twenty five hundred okay well I don't know how to get caught up a thousand this month and 1500 next month okay because its first somebody else may not get paid but by god the lights are getting paid right I'm gonna pay them you're going to eat and we're going to catch the lights up in the next two months and we're gonna pay a few of these other things but that's about it because you can't have your dadgum utilities cut off kiddo right no I know I guess you know and because here's what happens fart one little thing he breaks like the car and then there's a medical thing and then there's another thing and then there's another thing and then there's another thing and these crisises start piling up and they've gotten piled so high now that we're down to we don't pay the lights and so what ends up happening is you have so much freakin stress on Whichard in the situation you're describing that it paralyzes you mm-hmm if you were doing for someone if if you walked up to someone else you went through Financial Peace University five years ago if one of your friends came over and dumped a shoebox of bills in your on your kitchen table you could work right through their situation because you're not stressed out about their situation and you're smart enough to do math I mean this is not heart there's not a sixth grade math you can do it but but the problem is you've just been carrying this all by yourself emotionally because your husband's not been participating it's gotten disorganized and stress upon stress upon stress upon stress following a bankruptcy following two kids I mean it's just piled up on you and you paralyzed you and so so you ended up because of the desperation making some bad decisions and that's just that doesn't mean you're dumb it just means you're a human so it's time to get organized and split this up and say okay are we going to eat this elephant a bite at a time we got to address these truck this truck we got to address this yet light bill we got to get these medical bills go straight now which ones first which ones second which ones third who's working extra let's have a garage sale what are we doing let's get back in Financial Peace University and get our batteries charged again go back through it's free go back through you and your husband get a class started I'll put you on hold Kelly I'll help you find a class you get plugged back into a class and if you need a new kit or something to plug back in because it's sound like you went through an older system we'll put you back in again I want you to I want you to win but you're going to have to grab this thing by the throat and choke it until you get it under control because it's whipping you right now and it's time for you to get back on top and start winning again I mean you this thing's got its got its foot on your neck and it's time for you to say no no money you're going to behave money you're going to do what I tell you to do and if somebody doesn't get paid this month because we're working something that's more important well so be it can't pay that medical bill this month why because I'm broke that's why I paid other stuff that was more important than you and that's what you tell them and you'll get to them you'll get to them and you'll get by by out there with some overtime and some other people with some extra jobs and you'll start selling a car with the engine that doesn't work and you'll have a garage sale and you get on a dadgum track and you can you can crack the whip on this and turn it around but this is about you leaning into the details in the process so hold on Kelly he'll pick up and I'll tell you what else I'm gonna do Kelly um hook her up she needs somebody help her unpack this see if we've got a coach in the area if we got a coach in the area I'll pay for that too we'll pay for the coach to sit down with her and help her unpack but huh Bubba's got to come husband's got to come okay I'm not playing with her just doing it by herself they both got to be in the game they're both in the game I'll pay for the coach too that's the deal hold on this is the Dave Ramsey show hey guys thanks for watching if you enjoyed this video click the subscribe button to get the latest content and check out these other 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Channel: The Dave Ramsey Show

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Id: -kBdIGTWCT8

Length: 9min 28sec (568 seconds)

Published: Thu Feb 11 2016