Why are SBA Loans a Bad Idea?

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  • Опубліковано 6 сер 2020
  • Why are SBA Loans a Bad Idea?
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КОМЕНТАРІ • 840

  • @jlara36
    @jlara36 2 роки тому +125

    An SBA loan is not the problem, paying only the minimum payment on any loan is the problem. Also, taking on debt that you can't afford is a problem.... but it's not the SBA loan in and of itself thats a problem. So no, SBA loans are not a bad idea if you have a plan.... no debt is a problem if you have a plan on how to use it and pay it back. If you have a business, you're going to take on some type of debt, you just have too unless you have a ton of cash sitting in your bank account that you can use to finance your business. But usually thats not the case. You're going to have to take loans out somewhere at sometime unless you're seeling equity in your business.

    • @boogiehighroller
      @boogiehighroller 2 роки тому +1

      well said

    • @midnite1235
      @midnite1235 Рік тому +4

      I agree!
      And how about if you used the extra $900 a month,
      for Biz, and / or some good investments?
      Listen to Rich Dad Poor Dad!
      😁😁😁😁😁😁

    • @joshwhite6163
      @joshwhite6163 Рік тому +1

      Yes! exactly!

    • @lissettelopez8331
      @lissettelopez8331 Рік тому

      No, SBA loan IS a problem because they are taking advantage of the VA Loan program and veterans.

    • @HisDudeness2020
      @HisDudeness2020 11 місяців тому

      There are things Dave Ramsey says I can agree with, and while his experience with debt may have been negative, realistically not everyone has money laying around as you've stated. I had no choice but to take out an auto loan so I could replace my old beater. Sure, I have a car payment, but it was better than going upside down in car repairs on my old beater. Plus, not going to work because I had no car was not an option for me. Thankfully though my car is nearly paid off and will soon be one less thing to worry about. I would definitely take advice out there with a grain of salt, as there is no one size fits all solution for everyone's situation.

  • @carloswithac
    @carloswithac 3 роки тому +181

    This was an irritating call. Just her lack of order.

    • @jmc8076
      @jmc8076 3 роки тому +14

      Maybe, but she’s an artist and prob a very compassionate, supportive friend. Ive known a few. We all have our strengths and weaknesses.

    • @aleshanew7727
      @aleshanew7727 3 роки тому +1

      Really if you think about it...who want to tell there info on the air when you know you fk up, but you don't want to keep fking up.🤔

    • @jaygiant10
      @jaygiant10 3 роки тому +4

      It was painful, poor girl needs guidance

    • @robertsmith3772
      @robertsmith3772 3 роки тому

      *I can never forget the help you render yo me I just confirm the 5k now thanks hackerbrain1 on Instagram*

    • @LawnCareLady
      @LawnCareLady 3 роки тому +6

      I disagree. She gave all the info. My goodness she's on live radio, give her a break.She does very well for an artist, Much more than you armchair youtube video critics can say for yourself.

  • @TheWatchman48
    @TheWatchman48 Рік тому +14

    She's buying time and that move wasn't a bad one. She did a balance transfer with a lower interest rate and a lower monthly payment. She may even have room to improve her life if she's disciplined and plays her cards right.

  • @Josh-fw5yt
    @Josh-fw5yt 3 роки тому +63

    Those SBA loans have covenants that say you can’t use the proceeds to refinance existing debt. If she’s not able to demonstrate appropriate usage of the money, she may be in trouble. Surprised Dave didn’t mention that.

    • @virtuosowins
      @virtuosowins 3 роки тому

      I was thinking of that point and I am not American.. Here for instance, we cannot use personal loans to invest in stock markets say..

    • @markyouneva7840
      @markyouneva7840 3 роки тому +4

      I looked it up, the terms say you cannot use SBA loan proceeds to pay off LONG TERM/Fixed Debt (aka loans), but she paid off credit cards which are considered short term debt and it is permissible. However, she would still probably need to demonstrate that the credit card balance paid off was business related.

    • @BeefPapa
      @BeefPapa 3 роки тому +6

      Just use the EIDL funds to cover operating expenses, so the cash flow from operations can cover any debt.

    • @BeKemeFeqadu
      @BeKemeFeqadu 3 роки тому

      BeefPapa exactly

    • @thekub32
      @thekub32 3 роки тому

      What kind of trouble?

  • @chaimgluck8979
    @chaimgluck8979 3 роки тому +69

    It's actually illegal to pay off other debt with the SBA loan

    • @tanpham7411
      @tanpham7411 3 роки тому +8

      She forgot to read the terms and conditions. Plus if she doesn’t pay the loan back, SBA will come after her business. It was a really bad move overall.

    • @skincareceo
      @skincareceo 3 роки тому +20

      They won't audit anyone unless 2 million or more.

    • @patrickOsully
      @patrickOsully 3 роки тому +5

      She can pay herself a salary with that money so she probably should have paid the c c off over 4 months.

    • @edwardanugent
      @edwardanugent 3 роки тому +5

      You can use the money to pay off credit cards from your business. It is consider accounts payable.

    • @Originalman144
      @Originalman144 3 роки тому +11

      They will never enforce it. The money is made out of thin air, it's not even real.

  • @ruskie8103
    @ruskie8103 2 роки тому +39

    Getting the loan was a great idea. You can always pay off quicker if you want Steve.

    • @mendopolis
      @mendopolis 2 роки тому +4

      Definitely. And, yes, if you’re continuing to run up more debt and not building repeatable profitability into your business, unquestionably, you have to change that, soon! Btw, at a 29% rate, you’re gonna have another $6-8k to pay on that $19k of debt, so there’s a lot to be said for locking in a lower rate.

  • @mleezy930
    @mleezy930 3 роки тому +69

    She did the right thing

  • @ericboxer3053
    @ericboxer3053 3 роки тому +21

    The ELDI loans is once in a lifetime debt....
    3.75% fixed, 30 years, no payments for a year, and no recourse to the owner..no personal guarantee, the debt dies with the corporate structure in the event of liquidation...i own multiple businesses and grabbed as much as that as i could, great arbitrage opportunity.I get Dave's strategies are aimed at less sophisticated people financially.

    • @fullyloadedtvNY
      @fullyloadedtvNY 3 роки тому +2

      What’s your email let’s do business your the goat

    • @dustovshio
      @dustovshio 2 роки тому +1

      depends on the amount for the personal guarantee and collateral.

    • @MsFinney
      @MsFinney 2 роки тому +1

      So would you say it’s a good idea to get the SBA loan?

  • @sw23971
    @sw23971 3 роки тому +52

    Dave was more upset with her because she didn't follow his typical advice and live like a homeless person for 2 years to pay off the credit card debt. IF this woman does the right thing and hammer the loan with extra payments to pay off the loan as fast as possible she'll be ahead of the game. 4% interest? Nice! Just stop telling people " I got an SBA loan" to pay off my credit card debt.

  • @lepakage2
    @lepakage2 Рік тому +5

    So many people have done a wonderful job analyzing the video. I just wanted to speak to the numbers for some context.
    29% and 3.75% are the annual rates of interest. 29% on $19,000 credit card debt is interest only of $459/month. $19,000 at 3.75% amortized over 30 years has a payment of $87.99 with $59.38 as an interest expense.
    Let’s say the SBA loan had a 3% fee - that would still only be $570 which is basically only one month of interest! So, yes - Dave is right in that many people would pay the minimum and spend the excess. To assume everyone does this is wrong and not helpful. That $400 of interest saved can go a loooong way!

  • @markyouneva7840
    @markyouneva7840 3 роки тому +33

    I guarantee a good amount of the caller's credit card balance was interest charges accumulating at what appears to be a default rate of 29.xx% APR. She might have missed a some payments. It is true that she needs to increase her income and do so quickly, but we're in a pandemic with 20% REAL unemployment rate. Given these conditions, and given the fact that her debt was growing by $400 each month, I think he made a good financial decision to refinance it at 3.75% APR. The 30 year term doesn't matter as long as she pays it off ASAP, maybe in 2-5 years once the economy starts to improve and she can increase her income. We get it Dave, debt is bad and prolonging a debt situation isn't ideal, but this idea that everything has to fit into only two categories "good" or "bad" could be counter to what you're trying to teach people. Clearly, there are two separate issues here. If it were a medical situation, you first need to stop the bleeding/suture up (aka refinance the debt) then do the healing/recovery (aka increase income and pay down debt). If you tell someone they made a bad move when they actually did the best under the situation, you are not helping them build their self confidence with respect to proper financial planning and management.

    • @mjai1120
      @mjai1120 2 роки тому +4

      Well said!

    • @jnev9046
      @jnev9046 2 роки тому +3

      On top of no way she would have paid it off I'm 19 months. The interest would've kept it snowballing. She's saving 1100 , but they're pushing her to work more...lol. Now she can do that with the lower interest rate, she can still triple her payments. Now I think she's bad for using as debt consolidation, but for a business loan it's perfect!!!!

    • @midnite1235
      @midnite1235 Рік тому +3

      Great Advice!
      I still think the extra $900 per month in her pocket each month, can be used to make more $$$,
      or to build a nest egg!!

    • @supersupersomething
      @supersupersomething Рік тому +1

      THIS. Thank you Mark.

  • @danawaldrop4930
    @danawaldrop4930 2 роки тому +4

    SBA loans are not supposed to be used for your personal expenses!

  • @SoHoDon_718
    @SoHoDon_718 3 роки тому +68

    This lady high asf 😂

    • @Elizabeth-yg2mg
      @Elizabeth-yg2mg 3 роки тому +2

      She's an artist--that's how they can be.

    • @tje5553
      @tje5553 3 роки тому +1

      Mmm...dumb af

    • @robertsmith3772
      @robertsmith3772 3 роки тому

      Elizabeth *I can never forget the help you render yo me I just confirm the 5k now thanks hackerbrain1 on Instagram*

    • @robertsmith3772
      @robertsmith3772 3 роки тому

      tj e *I can never forget the help you render yo me I just confirm the 5k now thanks hackerbrain1 on Instagram*

  • @JASONMAKRIS1981
    @JASONMAKRIS1981 3 роки тому +20

    The biggest problem is she violated the terms of the EIDL by not using it for what it was for.

    • @MysteryofMoney
      @MysteryofMoney 3 роки тому +1

      There is a lot of that going around and some channels giving bad advise.

  • @OIPIO
    @OIPIO 3 роки тому +39

    This call is so irritating, if you’re going to call in at least have some info ready. It sounds like to me she needs to get a real job on the side until being an artist proves to make a lot more money. Even driving Uber for a couple hours at night would be a great start not to mention she could promote her paintings or drawings to passengers. This being said she doesn’t seem to eager to pick up extra hours anywhere 🤷🏻‍♂️

  • @morganwoodsfarm-kim1060
    @morganwoodsfarm-kim1060 3 роки тому

    I applied for, and received, one for our farm business. I did not understand it to be a loan that could be used to pay off *prior debts* such as credit cards. However, I could be wrong. The document was several pages which I was trying to decipher on my iphone. We are using it for *future* (loan origination date forward) business expenses, not past. And the wording does say that if someone came knocking and wanted justification for the funds, you need to have receipts ready and willing to show. And this woman is correct...it is 3.75% and it does not start paying back until one year from origination.

  • @Carlos-sh6iu
    @Carlos-sh6iu 3 роки тому +70

    “I don’t know how to do that”. You get a frickin job lol

    • @ivn.b
      @ivn.b 3 роки тому +1

      😂

    • @momocamara
      @momocamara 3 роки тому +1

      @@ivn.b 🙉😂😂🤣

    • @Mav7x614
      @Mav7x614 3 роки тому

      😒🤦🏻‍♂️🤣

  • @sunshinemarie3550
    @sunshinemarie3550 3 роки тому +12

    There are so MANY ppl that recently received an sba loan, they had to pay $1500 to the person that fixed up their application giving themselves $10,000 debt with maybe $1000-$2000 that is supposedly free 🤣 NOTHINGS FREE. It all comes with a price. When the truth is stretched you don’t need whatever you applied for. I’m debt free except my mortgage and if I want something I’ll save for it. I’d like to see Mr. Ramsey addressing this situation (I love the Dave Ramsey show🥰)

  • @patrickOsully
    @patrickOsully 3 роки тому +6

    The figure of "99% of people won't do that" is false. People do learn and change. Even if she paid just $500 a month she'd be done with it less than 5 years. I know people who've had bad debt like credit cards and change their ways and get rid of it in a reasonable amount of time.

  • @suegarbella4896
    @suegarbella4896 2 роки тому +2

    thank you for providing all the software used for this program works perfectly and okay coming back for more since this is working alright.

  • @ozarked2363
    @ozarked2363 3 роки тому +12

    I have a business in the art industry. My customers are artists. 90% of them can't tell you what their annual income is. They can't tell you what their expenses and overhead are. They can't tell you what their profit margin is. She's very typical. She can't sell more art because she has no idea how to market it. She can't raise her prices because it's not good enough to sell at a higher price. Her gross annual sales are about $48,000. She'll still be doing $48,000 in sales when she's 78 years old.

    • @GamingTaylor
      @GamingTaylor 3 роки тому

      Isn't the art world highly volatile? I don't know how someone can make a stable living selling art, but I know a lot of people try.

  • @zvaults4168
    @zvaults4168 3 роки тому +39

    Bit strange to call loan consolidation a scam and then describe the problem: the person who has the loan might make smaller payments.
    We are talking about adults here. They can take some freakin’ responsibility and stick to a proper payment schedule. It is a lot better to have a (much) lower interest rate. That wasn’t stupid, that’s great.

    • @patrickOsully
      @patrickOsully 3 роки тому +6

      Agreed. This particular person was better off doing what she did.

    • @BeefPapa
      @BeefPapa 3 роки тому +13

      Replacing a 25% debt with 3.75%, it's a no brainer.

    • @horaceempowerment
      @horaceempowerment 2 роки тому +2

      Agreed 💯

    • @lissettelopez8331
      @lissettelopez8331 Рік тому +1

      Loan consolidation... lol do you know what caused the 2008 financial crash?

  • @tymarls
    @tymarls 2 роки тому +2

    The title is misleading. This says nothing about SBA loans or analyzing them.

  • @michaelhews1620
    @michaelhews1620 3 роки тому +16

    He should have complemented her for her decision to restructure her debt and advise her to start making larger payments towards the principal, but he is badgering her. SBA loan was a great idea, just pay the principal/ interest quicker.

    • @warrenkatz1469
      @warrenkatz1469 3 роки тому

      It was a smart move .when your her age
      Your want to enjoy life .she is not going to living to pay off a debt that now has become vertully meaningless.

    • @michaelhews1620
      @michaelhews1620 3 роки тому +6

      @@warrenkatz1469 She was in her 50s. If she pays 200 extra per month + principal ($100), she will pay off the loan in less the 6 years. If she kept the high Credit card debt, she would be filing for a bankruptcy within 6 months.Who can afford $1000 credit card payment? So, she made a smart decision. Unless, you are implying that she could have whipped out the debt by filing a bankruptcy.

    • @Mulatto4Yeshua
      @Mulatto4Yeshua 3 роки тому

      Well, in fairness to Dave, if she was thinkin on that wavelength, she wouldn't have to call him to get his blessing. She would just go on making the same payment amount with more going to principal and pay the SBA loan off quickly. Because of her seeming like of organization by how she answered Dave and Anthony's questions, we don't know exactly what she is thinking.

    • @kurtjames9487
      @kurtjames9487 3 роки тому

      She needs a good badgering. She's had her fun coasting through life, buying what she wants to buy. In her 50s, it's finally time for her to get serious.

    • @warrenkatz1469
      @warrenkatz1469 3 роки тому +5

      @@michaelhews1620 I agree with you ! The women made a smart move.instead of admonishing her,he should have congratulated her!Ramsey has one size fits all,which is abdurd.the idea that she is going to pay $1,500, a month when she couldn't pay a $1000 is not helpful.
      The idea that your going to live like a monk and miser is somthing 99%of people cant do.

  • @judymckee5992
    @judymckee5992 3 роки тому +13

    Why don't she share her house? Cut her bills. Cook and refrigerate for 1 week.

    • @judymckee5992
      @judymckee5992 3 роки тому +2

      @UCDpflWA4E_yZFD3-a65TAKQ , I used to work 13 hours a day, saving as much as I can, cut my expenses and retire early. Need focus and discipline,( fyi, finished high school and doing business.)

  • @nevinkuser9892
    @nevinkuser9892 9 місяців тому +1

    I took out a $35,000 loan with an 18 month repayment plan. Yeah it's been hard as hell but I've only got 6 more months!

  • @elcapitanmorgan556
    @elcapitanmorgan556 3 роки тому +24

    $4500 a month in income is a very decent income for 1 person!
    A family of 3 can live on $3000 a month. I’m surprised they didn’t ask her if she was living on a written budget.
    I think that’s where her money is going - she doesn’t know! Cuz $4500 is a lot for just “mortgage, food, to get by” as she said .... somethings not adding up

    • @blaze376192
      @blaze376192 7 місяців тому

      Depends where you live. Here in Florida, 4500 a month is almost living paycheck to paycheck. Our household income is double that, and for two ppl in a one bedroom apartment, that's just barely comfortable.

  • @TheMrRomely
    @TheMrRomely Рік тому +1

    Where does it say that she took at SBA loan? The title of the video is misleading. She would never qualify for an SBA loan since you need 10% down anyways, which she clearly did not have.

    • @JaredShapiro
      @JaredShapiro 2 місяці тому

      Those are on 504 SBA loans, not 7(a) loans.

  • @dbrandon4528
    @dbrandon4528 3 роки тому +4

    This is what denial looks like........

  • @kanecierra8940
    @kanecierra8940 3 роки тому +5

    Speak Dave!! I thought the exact same! It’s mentally crazi how the mind works. Once out of debt millions of materialistic things look at you and say buy me now!

  • @queen.kristal8395
    @queen.kristal8395 3 роки тому +43

    I have a feeling she is not making enough to pay this debt off

  • @JadeTrading
    @JadeTrading 3 роки тому +1

    Thank you for sharing 🙌

  • @nextlevelbricks7334
    @nextlevelbricks7334 11 місяців тому +1

    This woman caller is clueless of her own finance.
    She was unprepared, could not answer any question directly, and was not confident in any of her responses.
    The smartest thing she can do is pay off loan as quick as possible with the same volume of payment as if she was still paying her credit card monthly payments ($1K)... but we all know she wont..

  • @xpark546
    @xpark546 Рік тому +1

    I have 4 SBA loans for my business. 1st off SBA loans max terms are 25 years. 90% of them are 10 year loans. All four of mine are 10 year. Secondly they will not let you use that money for debt. Something is not adding up.

    • @Adrian-op5ni
      @Adrian-op5ni 2 місяці тому

      What’s the best SBA loan you recommend for a person starting a new Start up business? I think there is a 7A loan or something like that, but I have to put up my house as collateral. Sounds scary and irresponsible but I really want to start my business by 2025.

    • @xpark546
      @xpark546 2 місяці тому

      @Adrian-op5ni SBA 7A is the way to go. And yes they may ask for collateral but If you are scared to lose your collateral you need to check your business model.

  • @donnieray2142
    @donnieray2142 3 роки тому +7

    So In other words SBA loans are bad for paying off debt but SBA loans are perfect for business start ups

  • @number1sun
    @number1sun Рік тому +3

    I think moving debt to a lower interest rate is fine as long as you continue to pay it off. Why wouldn't you want to pay less interest?

  • @dinosaurus6277
    @dinosaurus6277 3 роки тому +10

    U can’t use SBA loan to pay off credit card debt. SBA loans have criteria or conditions attached..

    • @Neo-ti2rz
      @Neo-ti2rz 2 роки тому

      Business debt can be paid off.

  • @zappyeats2579
    @zappyeats2579 2 роки тому +8

    19k @ 29% interest does not equal 19 payments of 1k a month to pay the loan. Dave where did you go to elementary school?

    • @jnev9046
      @jnev9046 2 роки тому

      I said the same thing. It would keep snowballing.

  • @Mancia620
    @Mancia620 Рік тому +1

    We got a SBA Loan. 3.75%. our loan was pretty big. $381,000... Paying $13,000 a year in interest. 😢 We did also consolidated our debt. I knew that it was a big no no from Dave but it was a risk I was willing to take. Minimum payment is about $2,000... It is very doable in case things go South for us. But we are throwing every thing we got now. As of today 6/16/2023 I still owe $320,000.... We srarted paying early, but it was so sad looking at our first couple payment just going towards interest. My advice to you, if you got an sba loan, start paying it off now, dont wait. We got this!!!! God bless 🙏

    • @NOBOX7
      @NOBOX7 11 місяців тому

      You got duped like me , it was a big Joowish zionist scam just like the plandemic

    • @CJ-wm4ss
      @CJ-wm4ss 10 місяців тому

      I advice you reach out to Nathan , he is in the best position to assist you with your sba loan forgiveness. He assisted me with mine after I started paying mine off but couldn't keep up.

    • @CJ-wm4ss
      @CJ-wm4ss 10 місяців тому

      SbaNathan

    • @CJ-wm4ss
      @CJ-wm4ss 10 місяців тому

      on IG

    • @Adrian-op5ni
      @Adrian-op5ni 2 місяці тому

      Which type of SBA loan? I was looking at one, but I have to put my house as collateral. It’s risky.

  • @candaceellison7147
    @candaceellison7147 Рік тому

    Still learning of the ins and outs of SBA but correct me if I’m wrong, if she defaults isn’t 85% of it backed ?

  • @onewithin1chava949
    @onewithin1chava949 3 роки тому

    Let’s see I applied and was approved back July 2020 was told I was funded bank says they have no information call sba they say in process here we are 2021 and still they say in process it’s a scam

  • @squigl3z78
    @squigl3z78 7 місяців тому

    The only way i see this as a win is if she doesn't run the cards back up . The loan goes against her LLC and not her personal credit .so she clears alot off her credit report boosting her credit and lowering her payments allowing her to breathe for a while

  • @impoortan
    @impoortan 3 роки тому +4

    Hello Sir Dave Ramsey and to everyone making this show great and amazing. Today its my bDay and also today I got my FREEDOM back! Thanks to you Sir Dave. ever since you came to my rescue i followed everything, so now i have all these knowledge being smart on money decisions. GOD BLESS and ill be a number one fan and watching the show forever!!!!!🤣👏👍❤❤❤

  • @carolinadocks
    @carolinadocks 3 роки тому +5

    Yes he correct ab the psychology But if you take Dave Theory on 10 percent growth on good growth mutual funds he talks ab that average 10 percent gain and take 100,000 sba loan at 3.75 percent .. u be making a yield of 6.75 percent and 100,000 would be a profit of $6750 a year and if sell parts of it after it a year it be tax at capital gains of rate which is much lower rate the ordinary income . So if u do it right the sba loan is a great opportunity

    • @warrenkatz1469
      @warrenkatz1469 3 роки тому +1

      Great point!the women actually made a smart move even if she doesn't know it.
      Ramsey always gives this unrealistic advice.

    • @insideoutsideupsidedown2218
      @insideoutsideupsidedown2218 3 роки тому

      You forget you have to make monthly payments on the loan. If she took a 100k loan she still has to pay back the 100k. So putting the 6700 back onto the loan gets her nowhere over 30 years. How about pay off the 19k you owe, so you can free up you outgoing money and use that to invest

    • @carolinadocks
      @carolinadocks 3 роки тому +1

      The $6750 is after u pay interest payments if u didn’t your yield would $10,000 not $6750 . I got the $6750 calculation from 10 percent growth minus 3.75 percent on $100,000. either way u yield $6750 then put that $6750 profit e every year to pay of the Balance which over 13 years be paid off. The point isn’t ab her 19,000 . I am showing u how u can make money by borrow it at low interest 3.75 percent and getting a higher rate of return on something that has been proven to generate over 10 percent rate of return over 10 year span which is a high growth mutual funds u can find out in the market

    • @TechLeatherCraft
      @TechLeatherCraft 3 роки тому

      Except the SBA loan is meant for business use...not paying off debt (unless it is linked to business), nor are you supposed to take the money and use it to invest in the market. Technically, that's against the terms of the loan.

  • @ejs129
    @ejs129 2 місяці тому +1

    This lady is so nerve-racking 10 seconds of conversation took her 2 minutes to get out. 🤦‍♂️

  • @AOLnotas
    @AOLnotas 8 місяців тому

    Why not paying $500 a month or more so she would be fine with low interest.

  • @hannahmartin7465
    @hannahmartin7465 3 роки тому +6

    Yeah she was all over the place. Can’t save everyone guys

  • @marksanders60
    @marksanders60 3 роки тому +8

    Sounded like a good move until she was excited about the 30 year loan. I would have been excited to save 25% interest vs the credit card.

  • @ericson0504
    @ericson0504 3 роки тому +2

    "I don't know how to do that." She doesn't know how to go on to the computer and fill out an online application to Target? Don't know how, or dont want to? Artists don't just make a living sitting behind a canvas. There's a whole world she should be exploring, where someone else writes and hands her a check. And then this becomes her side gig.

  • @oblivion85
    @oblivion85 3 роки тому +22

    Please have your numbers in order before calling dave ramsey show lol

  • @domdomdiddy3036
    @domdomdiddy3036 3 роки тому +6

    Dang I work for the SBA, doing the exact loan (EIDL) that she has... I probably gave it to her lol

    • @SmazzitSEOTrainingInstitute
      @SmazzitSEOTrainingInstitute 3 роки тому

      Oh wow, you probably just approved me too

    • @MehulP30
      @MehulP30 2 роки тому

      You still selling money over at the SBA? lol
      Have a friend with a start up and has some revenues that is looking to purchase more income generating assets for the business.
      Drop your info.

    • @PokerDummyface1024
      @PokerDummyface1024 Рік тому

      How do I get a loan sir/ma'am

  • @umairahmad4711
    @umairahmad4711 3 роки тому +13

    She’s probably smoking something before the call 🤣

  • @KiloIndia
    @KiloIndia 3 роки тому +34

    I got a feeling she won't listen lol

  • @RicoSweets210
    @RicoSweets210 Рік тому

    The title should be the issue with debt consolidation. Not SBA loans

  • @ZERVVREZ
    @ZERVVREZ Рік тому +1

    The people that call into this show are extremely bad with money, it's crazy...

  • @23x31
    @23x31 3 роки тому +8

    Its cheaper to pay off 3.75% debt more quickly than 17%+ credit card debt. FACT.

    • @wtk6069
      @wtk6069 3 роки тому

      Yes, unless it enables more bad behavior.

    • @jameslawrence4160
      @jameslawrence4160 3 роки тому +1

      I agree. Dave doesn't seem to care about interest when it comes to paying off debt. He never advises to pay off high interest loans first. I dont understand. In some cases it would seem smarter to pay off the higher interest debts than the smallest debts first.

    • @freemarketspeople3514
      @freemarketspeople3514 3 роки тому

      As Crazy Alice use to say: “It doesn’t matter!”. Not about interest rates, it’s about behavior.

  • @juliettef.g6211
    @juliettef.g6211 3 роки тому +12

    Now I'm thinking if I should take the SBA loan🤔🤔🤔

    • @peterpan4038
      @peterpan4038 3 роки тому +1

      Take the small 1 million $ one.
      I mean, what could go wrong. xD

    • @umairahmad4711
      @umairahmad4711 3 роки тому +1

      Martin Vogt lol

    • @juliettef.g6211
      @juliettef.g6211 3 роки тому +1

      @@peterpan4038 😏😏😏

    • @jonathanneal9399
      @jonathanneal9399 3 роки тому +2

      Read the SBA loan you have to put your assets as collateral. If you are thinking of getting a loan get the PPP loan

    • @Adrian-op5ni
      @Adrian-op5ni 2 місяці тому

      @@jonathanneal9399anymore info on this loan? I really really don’t want to put my house as collateral for an SBA loan.

  • @supermansr44
    @supermansr44 3 роки тому

    Im a veteran and looking to partner with some investors on a small business. research is saying the SBA express loan is the only way to go. can you advise? looking to go in around $500k.

  • @Dungeonstone
    @Dungeonstone 3 роки тому +3

    Now that he CC debt is cleared, she would be better off overall paying the minimum payments on the 4% SBA loan for 30 years and investing the $850 that has been freed up each month.

  • @Visaliaipa
    @Visaliaipa 3 роки тому +18

    Now she will have a loan payment for the SBA loan and she will run the credit cards back up. I guarantee as sure as the sun will rise tomorrow in a year she will be back into credit card debt.

  • @APennyPinchersGuide
    @APennyPinchersGuide 3 роки тому +4

    From the title, they are t necessarily a bad idea. However asking Dave Ramsey if you should ever use a form of debt is only going to result in a “NO”

  • @TheLuxeTraveler702
    @TheLuxeTraveler702 3 роки тому +5

    She needs to reinvent herself. Learn a new skill. 53 years old and still an 'artist'. Time to move on to another avenue.

  • @3monsterbeast
    @3monsterbeast 3 роки тому +17

    I think she needs a little more than a loan... like a financial class

  • @joesillamanrs7189
    @joesillamanrs7189 3 роки тому +9

    $4500 income from being an artis, BS flag went up right there. Artists hardly make it. She’s getting money from another source. She needs a full time job to make that much. Or needs to hurry up and get married to someone that will financially save her.

    • @TheLuxeTraveler702
      @TheLuxeTraveler702 3 роки тому +3

      Who would burden themselves and marry a 53 y/o artist ? Not picking at her, but if she had a better career , plan, goals, I could see someone marrying her.

    • @nicoriley9473
      @nicoriley9473 3 роки тому

      😂😂😂

    • @SmazzitSEOTrainingInstitute
      @SmazzitSEOTrainingInstitute 3 роки тому +2

      @@TheLuxeTraveler702 Someone will, maybe not you but some will.

  • @vladgavrilov1969
    @vladgavrilov1969 Рік тому +1

    The caller is 100% right.

  • @Eyedbythetiger
    @Eyedbythetiger 3 роки тому +1

    Wow, these two are simpletons. She made a savvy move by saving herself literally thousands on interest and they pretend that was the wrong move. Either simpletons or their like to manipulate the audience for financial gains.

    • @startnow5508
      @startnow5508 3 роки тому

      You can NOT use SBA loans to pay off debt. They can fine you 150% !

  • @Jupiter1423
    @Jupiter1423 Рік тому

    3 words if you are taking on debt: predictable cash flow

  • @mothstoflame
    @mothstoflame 2 роки тому +1

    I'm confused what her motive for the call was.

  • @thedogfather1204
    @thedogfather1204 2 роки тому

    Good man 👍

  • @illmatic33
    @illmatic33 3 роки тому +5

    Don't agree on Dave here... She did the right thing... She just need to overpay. I overpaid $50 a month on my mortgage for years until refi. I could afford a 15 year but a 30 gave me a little wiggle room in case something bad were to happen like lost of job. I put 15% of my paycheck into ESPP and would sell the minute the stock goes up. Already buying at 15% discount was kind of hard to lose money there... I remember coming from a visit home to find out my HVAC broke... Due to the age it was better to get a new one... Opened an American Express which gave me 12 months interest free and put every single cent of that 7000 new HVAC on there... Paid the min for 11 months while I continue to save and reap from my ESPP... At 11 months made one giant payment of about 6k to wipe the Amex balance to zero. I've never had a balance on any if my two cards... Reap maybe 300-500 in cash back per year for the past 5 years. It's a game and you gotta know how to play it... Came natural to me, kind of like common sense...
    Instead or telling people what others do or don't do he should show people how to game the system...

    • @parsiababaeian8637
      @parsiababaeian8637 3 роки тому +1

      I'm not agree with dave either on this.

    • @tself77
      @tself77 3 роки тому +2

      He makes a general set of rules to apply for everyone knowing that more than 50% of people who go for a 30 year over a 15 aren’t goons to pay any extra.
      It’s just a fact.
      He doesn’t always factor in interest rates and stuff to get the best deal but rather to save money related to most human behavior.

  • @dandavenport4565
    @dandavenport4565 10 місяців тому

    The loan is not a problem, it is not a con. The problem is how people manage debt.

  • @ItsRossinator
    @ItsRossinator 3 роки тому +19

    If she only paid the 108 for the entirety of the loan, she would pay almost 39k for what was only 19k in debt.

  • @nyowdy
    @nyowdy Рік тому

    thanks!

  • @niemdan
    @niemdan 3 роки тому

    Lol, “yes please do”

  • @aleshanew7727
    @aleshanew7727 3 роки тому +1

    Really she's not doing to bad for her self. She just need to pay the same amount or 1k at min. When she is done add that 1k to her house payment.

  • @VicariouslyVanna
    @VicariouslyVanna 3 роки тому +1

    Why not just accept the 1K grant and use it to for your business to make more money?

  • @Jayjewelerofficial
    @Jayjewelerofficial 6 місяців тому +1

    30 years to pay off 20k 😮I paid off 20k in one year

    • @Classictiger
      @Classictiger 3 місяці тому

      Hi there 💝 do you need help getting approved for a loan?

  • @wolfrig2000
    @wolfrig2000 3 роки тому +1

    30 years at $105/mo would've been $37,800 without including interest

  • @Shoemaker30
    @Shoemaker30 2 роки тому

    Do both. Reduce interest and while paying higher

  • @juliettef.g6211
    @juliettef.g6211 3 роки тому +13

    She sounds lazy unless she has a medical problem that she doesn't want to share.💁‍♀️💁‍♀️💁‍♀️

  • @XaviaA
    @XaviaA 3 роки тому +2

    those debt plans are just funding someone else's debt free life for the 30 years you just moved it to

  • @danieltongaww
    @danieltongaww 3 роки тому +3

    Love this guy listen to him on the radio !!

  • @ettoresabella8484
    @ettoresabella8484 3 роки тому +1

    100 dollars a month to pay 19000 for 30 years is the best deal ever!!! You can move out and pay 100 dollars less in rent , or pay. Less100 dollars a month with other things too. GREAT DEAL SORRY THESE GUYS ARE CRAZY!! THIS FIRST GIRL GOT A GRAT DEAL

    • @StreetGeekz
      @StreetGeekz 2 роки тому

      …..🤦🏾‍♂️…..

  • @Sexy40baby1
    @Sexy40baby1 3 роки тому

    All she did was stopped the credit card companies from getting the interest and is now paying it to the bank to the tune of 18800 on top of the 19000 she borrowed. If she takes 30 years paying 105/month she would have paid a total of 38800. Good lawd!

    • @blinkguy4ever
      @blinkguy4ever 2 роки тому

      that's better than paying 25% APR... you could say she could be paying for everything sooner than 30 years, but we all know how it is when get into the CC traps.... its really really hard to get out of it. i think 3.75 is a no brainer to me, now she can breath and have an opportunity to change her economics behavior

  • @jmc8076
    @jmc8076 3 роки тому +6

    She needs to get creative and use her talent to do things out of the box for a while, ie helping stage homes to sell (contact realtors or put ads on Craiglist etc), doing custom wall murals for home/business owners etc., teaching art in person or online (simple projects in small groups or one on one - look on YT for ideas) and too many other ideas to list. Brainstorm and burn up phone. Go outside comfort zone and think about using talent in other ways. Charge per project for custom work like murals/home staging. Still be an artist but side hustle until.. It’s not lowering standards and may even pick up clients primary artwork. A friend who’s an artist (started late 50s) makes good money by doing commissions incl custom bday/holiday cards. The wealthy will pay well for one-of-a-kind pieces and work. Aim higher. God luck to caller.

  • @Somegirl811
    @Somegirl811 9 місяців тому

    This seems silly. She reduced her interest dramatically and lowered her payment. Of course she should try to pay extra but shes clearly better off than before. Getting a business loan is q great idea for those investing it. And reducing interest is kind of like investing.

  • @1HotSkiBunnie
    @1HotSkiBunnie 3 роки тому +5

    No. The problem is that they force you to defer payments for one year while interest is adding up. Also, 100.00 sign up fee. Most importantly, you give up many rights to your assets and financial books. Also, you have to file paperwork, which is a yearly burden. Also, they can force an audit and charge you. I read the fine print and said no way. I can get 75k from PayPal in seconds based on my past revenues. They don’t even care about my good credit.

    • @clcnj5365
      @clcnj5365 Рік тому +1

      Absolutely NO ONE forced ANYONE to defer payments. Deferment was an option. If you didn’t do the math that’s on you.

  • @jameslawrence4160
    @jameslawrence4160 3 роки тому +1

    I'm surprised she got a SBA loan, knowing so little about her own finances and income.

  • @1312cc
    @1312cc 3 роки тому

    So obvious many of these calls are pre-set. Otherwise, the caller wouldn't have so much trouble answering questions.

  • @virgosrus5733
    @virgosrus5733 2 роки тому

    I disagree IF you put that money in a high interest business account u can make that money make money and use that to help pay that loan off

  • @anthonydelvalle7891
    @anthonydelvalle7891 2 роки тому

    Why would she do that makes no sense at all

  • @z400racer37
    @z400racer37 3 роки тому

    .... If you get an SBA loan, you might not do the right thing, so you should DEFINITELY not do the right thing, and just pay all that interest anyways? What kind of hack advice is that?
    I’ve got some advice: Get the better loan, and the be responsible, continue to exercise self-control, and actually pay it off. 🤷🏻‍♂️

  • @GamingTaylor
    @GamingTaylor 3 роки тому +4

    I don't understand how selling personal art as a solo artist is considered a "small business", can I get a SBA loan for selling pokemon cards on ebay?

    • @supersupersomething
      @supersupersomething Рік тому

      If a business is legal and generates revenue, it's a business. Not sure your point here.

  • @ifast_breakonlnstagram9286
    @ifast_breakonlnstagram9286 2 роки тому

    Without much time I was snake to get my SBA loan accepted ask me how

  • @eternallife721
    @eternallife721 Рік тому

    How can I be SBA loan agent to make a money?

  • @landonholm8471
    @landonholm8471 3 роки тому +3

    Great personal finance guy.
    Not big business.

  • @parler8698
    @parler8698 3 роки тому +3

    Isn't using an SBA loan to pay off random, unrelated credit cards a type of fraud?

  • @Evita_Raylena
    @Evita_Raylena 3 роки тому

    “Honestly...”

  • @kristinahill2641
    @kristinahill2641 2 роки тому

    Can she write off the interest on an SBA?

  • @skincareceo
    @skincareceo 3 роки тому

    How do you not know the loan amount? TF