Take Out a HELOC to Pay Off My Debt?

[Music] michael is in alaska hey michael welcome to the ramsey show thank you it's pleasure to be talking to you you too what's up hey so i just got a quick question i got a little bit of consumer debt and i own a home so i got a little bit of equity um what are your thoughts on possibly taking out a heloc or equity loan to pay off that consumer debt bring down the apr and stuff like that and then just throw that equity loan into my debt snowball i wouldn't okay you want to know why why because you're going to feel like you did something and you didn't do anything all you did was remove it now listen all you did was move it interest rates not your problem lack of a budget lack of focus lack of attacking this is your problem you need to get fired up and pissed off about being in debt okay and get after your debt list it smallest to largest pay minimum payments on everything but the little one and get after it because here the problem when people move debt around they use words like pay it off you didn't pay it off you moved it and two percent savings on the interest rate is not your issue your issue is getting focused getting on a budget living on beans and rice selling as much stuff the kids think they're next get fired up and wired up baby that's what does it that's what moves the needle can we there's so much of what you teach about jobs and what we teach here that is about action it's um motive which leads to motivation yes personal finance is 80 behavior it's only 20 head knowledge there's so much about a job or choosing a career stepping into something that is about um you know don't try to trick it to don't try to trick your way past the hard work there's no shortcut to any place that's worth going beverly seals used to say he's absolutely right and so why are you going after it you've got to remind yourself on the journey why am i doing this i get that it takes time you know if you walked out on the street today with a camera and a microphone and you asked people are you willing to do whatever it takes to get where you want to go whether it be career and your money most people look at you and instantly say absolutely but if i followed up when i said well but i think they mean that but then here's the follow-up question if i said are you willing to wait as long as it takes oh that's exactly what happens they literally can respond that way and here's why there's something about the human condition where we want everything now that's what this journey is all about it's what dave talks about all the time it is it is the budget helps you control the behavior issued where you go hey this is a long slog it's going to take time and so you have to whether it's in your career and doing work that you deeply want to do because you know you were put on this planet to do it or it's paying off debt uh and saving money so that you can live like no one else all of this is the same exact conversation you want to live like no one else you want to work like no one else it's going to take time and you better have the big picture in mind and know that this is a climb but it is going to be worth it when i get there there's no shortcut there is not a shortcut a generation ago there was one of the world's best golfers was a guy named gary player yes and the story's been told about him over and over and over again through the years that he was warming up at a tournament on the driving range and he's you know pulling back that driver and sailing that ball out there 300 360 350 yards whatever just popping that drive straight as a string and this guy walks up behind him goes i would give anything to hit a golf ball like that and i think i think he caught him at the wrong moment because he turned around said no you wouldn't yeah it's a fantastic story no you wouldn't yeah you would not stand out here in the heat and hit 2 000 golf balls hit golf balls so long that you get blisters hit golf balls so long that the blisters bus hit but golf ball so long that you can't hold the golf club anymore from the busted blisters you tape up your hands and you hit another thousand balls you wouldn't do that yeah that's right you wouldn't do anything to hit a golf ball like that to which the poor guy just said i'm sorry i asked you but you know but just you know yeah that's the thing you know i i would do no you wouldn't you got you got to be willing to do it and and so that's the thing and i'm not picking on michael here that's not the issue but the issue is there's a thing about uh action and paying the price live like no one else so that later you can live like no one else that supersedes a little bit of interest saved by moving into a healer so true 88 of the people that move their debt over for debt consolidation go further into debt don't get out of debt yeah 9 out of 10 times yeah it's interesting they don't change their habits that put them in there in the first place that's right they feel like they did something and that's dangerous to feel like you did something when you did nothing yeah you know there's a theme here we're talking about folks that dave just brought up you've got to be passionate about getting out of debt that gazelle intensity where's that come from about the next job you've got to be passionate about doing work that you were created to do to help people so what's funny is you do a word exercise and there's a german word and there's also a greek word the root word of passion means to suffer now here's the deal when it's rice and beans beans and rice gazelle intensity working three or four jobs the last couple times i've been on the show we've had single moms back to back shows who paid off an enormous amount of debt with multiple kids doing everything that is suffering to suffer that means these people know what the word passion folks we gotta get this isn't like some romantic motivational poster word this is i am willing to suffer to go through pain and withhold pleasure that's what that means in order to get an outcome that i desire greatly whether it's starting a business inventing a product or service getting out of debt losing weight changing your relationships your marriage i'm going to tell you something passion you got to be willing to suffer for that outcome there you go this is the ramsay show

Channel: The Ramsey Show - Highlights

Views: 45,761

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, Take Out a HELOC to Pay Off My Debt?, heloc, home equity line of credit, mortgage, debt, heloc strategy, pay off debt, paying off debt, get out of debt

Id: ODqDtx7vpok

Length: 6min 20sec (380 seconds)

Published: Thu Jun 17 2021