Next Steps: • 💸 Start eliminating debt for free with EveryDollar - https://ter.li/knf775 • 📞 Have a question for the show? Call 888-825-5225 weekdays from 2–5 p.m. ET or send us an email.
Brought to you by the EveryDollar app. Start budgeting for free today.
I've got around $300,000 in equity in my home and I've got a total of $240,000 in debt with $140,000
of that being the mortgage. Some pretty bad debt within that $100,000. And I said I'd sell my house
to get out of debt, start over. I'm 43, I have zero retirement. The house is my retirement. I've
had a really rough couple of years. Some pretty tough events have happened. And I'm trying to get
out of this financial prison, if you will. And there's no money left over to save. And I just
don't know what to do. Should I sell the house, refinance the house, stay put, and just try to
do a good snowball? What's your household income? Combined with my wife, it's $140,000. With me
bringing in $100,000 and her bringing in $40,000, the only caveat to that is after my employer paid
health insurance, which is $1,700 a month, I'm taking home about $5,000 after taxes.
Okay. But you're getting a tax refund.
That's another thing. I owe the IRS $7,000 that I'm making payments on that I have left from my
wife being self-employed all the way back to $22,000 that we're making payments on. So my tax
refund goes to that. But that should be paid by this year's tax refund with my monthly payments.
I'm really hoping to have that paid off by the end of the year.
Yeah. And how much do you owe on your truck?
$39,000.
And that's of the $100,000?
Yes, sir.
Sell the truck.
And I'm $10,000 upside down. I would have to come out of pocket to be able to sell it. Now,
I just don't have it. But that would-
Still beats selling a house.
Yeah. You borrow, you know, go to the credit union, borrow the 10K,
and then get you a $2,000 car to drive while you get this mess cleaned up.
But 40% of your problem is the truck.
So find a way to get the 10K to get out of the truck.
Yeah. I mean, go to the credit union and borrow it. Or who do you owe the money to on the truck?
Ally Financial. The only problem with that, Dave, is my credit took a hit. We had a house fire in
and the insurance paid 80 less than what it cost to build. And I had 40 of that,
but I had to beg Rob Peter to pay Paul to find the other 40, which I did.
But my credit took such a hit during that time that I'm in the rebuilding phase of my credit.
I don't want you to rebuild your credit. Allied is a subprime lender. They're screwing you.
You have a 16% interest rate, don't you?
It's not that bad. It's-
Only 14%.
It's nine and a half. They do prime as well. They have a subprime program. I work in
automotive finance.
Well, you're getting destroyed.
Hey guys, George here with an important heads up. Mortgage interest rates just dropped,
and that is great news if you've been holding off on house hunting or refinancing,
but it also means a lot of other people are about to jump back into the market.
And my good friends at Churchill Mortgage will give you a custom plan
and a special offer so you can buy or refinance the smart way before the market shifts.
So go check it out by going to churchillmortgage.com
slash ramsayoffer. That's churchillmortgage.com slash ramsayoffer.
This is a paid advertisement. NMLS ID 1591. NMLSconsumeraccess.org. Equal housing lender.
You're getting destroyed by that car and by the nine and a half.
And you can't keep doing that in the name of quote,
rebuilding your credit for the opportunity to borrow money again.
I'm trying to break the spiral without selling the house.
And I'd sell a car 14 times before I'd sell a house.
The house isn't the problem, and it sort of doesn't change the behavior if you do sell it.
That got you into this mess. And then you still got to go rent somewhere, don't you?
Yes, sir. And that's horrible too, because it's going to cost double what my mortgage is.
It's just getting my hands on the 10K.
So let's get a hold of this amazing income you guys have and just clean this mess up.
You sell the truck, you got 61 left making 140. Now it's an easy math problem.
Let's live like we're broke for a year.
You do have to scratch up the 10 grand, but you scratched up 40 grand to get a house fire redone.
And that made part of this mess as well.
So I would rather have 10K on a credit card than I would have 40 on a truck.
And that's moving in the right direction then. And again, get you a hoopty.
That's not real popular when you're the finance manager at a new car dealership,
but I don't really care.
Um, you know, I don't care what your buddies think about what you drive.
I care about you and you winning.
And so appearances are not, not something I'm willing to invest in
at any stage of wealth building, but certainly not where you are at.
So yeah, you've got to do something to break the cycle.
And I don't, I think selling the house is awfully desperate when
you're sitting on a $40,000 truck.
So I'm finding a way to get that 10K and I'm getting rid of that thing.
Create your free, every dollar budget today.
The simplest way to budget for your life.
