Took a 22k loan at 10APR to pay off 22k debt (29APR). Knocked off 12k off that loan immediately. I'm now paying the same amount towards the loan as I was the credot card just with lower interest. The key is to have enough cash saved up to make the loan a sensible move
Why not pay everything off in total use the whole 22K on your debts ? I am in the same situation 26% interest on my car want to take out a loan to pay off the car and own it and use the rest of my loan for my medical in total about 17,299 so I’m going for a 17,400$ loan at maybe 8% what do you think
"Pay minimum payments on everything but your smallest debt, attack your smallest debt with a vengeance" This had me relieved, and made me realize i simply am not doing enough to get out of the debt that i, choice by choice dug myself into. Thank you for your insight.
Hey Dave, just a general “thank-you”. I make 80K a year with a 100K mortgage. Was looking at new cars for about 50K and a car loan. Instead I’m buying a 10K used car and focus that money on savings and paying the mortgage off ASAP 🙏
Go open a Roth IRA and max that thing out every month and find a good S&P 500 fund to invest it in (as long as you’re ok not touching it until past 68). It’ll ride the ups and downs of the market but you’ll be surprised how your $ will grow that way.
If more people just learned to be content with what they have and live below means they wouldn't spend most life drowning in debt. Seems simple and it is but most can't do it.
@@Musicienne-DAB1995 Exactly. Inflation has risen for all of us. But those of us that aren't drowning in debt can handle the inflation as opposed to those that barely can make ends meet. So being out of debt is the answer to surviving.
@@donaldlyons17 That's the point. If people lived below their means, then debt isn't even a problem. It's the people that feel entitled to buying stuff they should not buy are the ones that are struggling when inflation goes up.
Dave is right about this. Debt consolidation and refinancing to lower interest can be mildly helpful (assuming you don’t negate the savings by paying some fee or otherwise get ripped off) but it leads to the false belief that you’ve done something significant to address your problem.
I’ll rather make one payment a month with a lower interest rate than spread my money to multiple accounts. Making minimum payments to other cards then taking the majority of my spare income to pay another card seems too problematic.
Dave, thank you for accepting Michelle's answer that they have $75,000 after taxes. That is what the couple has to work with. Thanks for the video. Good luck to us all ✨😊✨.
I love it how Dave encourages people even when they’ve only paid off small amounts. Dave’s a gagillionaire and yet he still has the heart to say “Good, making progress” on hundreds or thousands of dollars worth of debt. ❤ it’s just so lovely that he’s lived this process and has never lost feeling for dealing with smaller milestones.
I paid off all our debt this year & now throwing all that monthly money into savings. I don’t feel the freedom that everyone talks about. I’m thinking it’s because the world we live in has changed so I still feel unstable.
We're on the same boat. I've been building up savings but not investing any of it because I just don't trust this administration. I have 401k in investments of course(around $400k), I'm just talking about cash on hand(emergency fund). Around $60k.
It's about us going through the painful & repetitive motions of paying off our debts, that only then will help us learn & understand our problems & errors we make with financial choices.
I have a friend who is forever in debt and broke. He told me the other day that he was going to get a debt consolidation loan. I tried to talk him out of it because he's never addressed his overspending. I finally told him that if he does this, he has to close his credit card accounts and don't go into anymore debt. He told me no. He said he was going to use the cards to get points. He'll never learn.
I believe Dave when he says that if whatever got me into debt isn’t addressed then I will get right back in there .. been there done that, twice .. make sure the consol is open not closed, so that prepayment is allowed without penalty - if not, I could spend more $ in interest (even with a lower rate) because the consol will wake longer to pay off than accelerated cc payments
THAT is the smartest thing Dave ever said. Playing with your debt doesn't make the problem go away. Poor people talk like they are smart to themselves. Neal
@@donaldlyons17 . If anyone spends way more then they make, the interest just makes it impossible to save. Saving is the only way to get rich. Either way you slice it, there's no way to get rich or successful takes effort. No one ever knocked on your door and say, congratulations you are magically wealthy. It hard work. Neal
@@hollyb6885 Only if you don't take on additional debt - unfortunately many people who manage to refinance/consolidate their debt at a lower rate think they can afford to borrow more afterwards.
If she changes her own behavior, her husband will see that and change his behavior too. Instead of "he pays the bills," it should be "we pay the bills."
10% is 10%! 2,400 per year for a couple years is $2,400 per year! A person making $75k wouldn’t scoff at a $2,400 raise, why not give yourself one by restructuring?
The actuaries know exactly how to play the odds so that the lender (card companies, banks, etc..) wins and the person hooked into the consolidation loan LOSES.
I'll have to say I kept rolling cc debt over to no intrest cards for 20 years almost every time no rollover fee til a couple of years ago maybe 300$ but it's all paid off I think I beat the banks on this, probably about 30k overall 300 intrest for 20 year loan .05% anuallized.
Daves a lot more chilled these days . I think lowering the rate makes sence. But it probably screws the baby steps small win affect as all the debt goes in one place
Great channel Dave !! Your content is inspiring and has helped convinced me to change my lifestyle. The results are apparent already and it's just a few months - appreciate all you do !!
Debt consolidation really does kick the can farther down the road. Yes it’s true it can free up your monthly income by a few percentage points, but you are so much better off paying off one debt at a time and free up income as you keep working
These people always trying to play games to get debt paid, but they won’t just send more money to pay it off. Or sell cars they can’t afford. Sheesh. Love the DR advice. I’ve never had debt except for my home, and am sitting in a brand new car. Life is good ❤
People forget, if you refinance your debt and save 10%, you only get the full 10% savings if you take the full term to pay off the debt. You can save so much more in interest at ANY RATE if you just pay off the loan faster
If you go this route the you might as well do the debt avalanche method. Some people get fired up with Dave’s little victories, some get fired up by more mathematical based routes. Either way works. Just get rid of the bad debt and move on.
I think it's important to keep repeating this information. First of all, everyone's situation is different. Dave Ramsey had to get the precise figures first before deciding whether it was worth it for her. Secondly, there are over 330 million people in America, many of whom have at least one debt (but, let's be honest, probably closer to three or four). Most aren't listening to Dave's teachings. This lady is new to his channel, so it's one small step at a time. But America desperately needs to hear Dave Ramsey's message against debt.
It is but again if you consulate and change how you go about your finances as he stated then it would make sense. 2k a year savings is 2k a year savings regardless that you can put into that debt then change your lifestyle and you can tackle that thing like it's water and be actually being more credit with higher credit limits. Makes more sense to do as a younger person due to initial credit card interest rates are outrageous vs once you have established credit.
I think the point Dave tries to make is not that it's a bad idea, it's that it won't solve the problem, and relieving that bit of pressure might actually make matters worse.
I'm cutting up my capital one card. I'm working on myself and why I buy crap. ✂️ ♠️. I have money coming in by fall too. Paying off my motorcycle and never going in debt again
Then study Drew G I Hart & afterwards study redlining & the laws, policies, rules associated with it Re: generational wealth and all the -isms that go along with it, to include systemic, structural, environmental; etc.)
Can we admit that Dave is kind of a jerk here? He goes on a tirade without even asking if they've made a budget, cut down their debt, anything. He just assumes they're being reckless and castigating this woman who just wanted some advice.
It would be a move to do though. She will not pay it off in a year so she would need to cut the cards get to work. It would save more than 2k in the long run.
They need to sell the most expensive vehicle. She said they paid off two and still have a loan on at least one. If there not out of debt yet they need to downsize.
She's trying to save money, and Dave is saying no. So what if it is only 2k. 2k is still 2k. Dave wants everything does his way. He does not care about anything else. She should do it her way. She will save money. So be it. These people loves to bring up strawman arguments.
@@rebeccagutierrez1960 Paying off the highest interest rates first will save the most money. I do understand that many people who call Dave’s show need the psychological boost from getting rid of as many bills as possible, as quickly as possible. It just doesn’t always make mathematical sense though.
I know this video is a year old, but I’m hoping I can get some guidance. September 27th I saw a reel of you recommending a woman to call this “number” concerning her debt. I prayed, then called the number-Americor. I have begun “the Total Money Makeover” and find out I might not should have done this. It has gotten me away from using my credit cards, and living within my means. Next month (6 months in the program) they will offer a loan to pay off all the debt. Do I need to not take the loan and just continue with the monthly payments and putting any extra towards the debt that I can?
Took a 22k loan at 10APR to pay off 22k debt (29APR). Knocked off 12k off that loan immediately. I'm now paying the same amount towards the loan as I was the credot card just with lower interest. The key is to have enough cash saved up to make the loan a sensible move
Why not pay everything off in total use the whole 22K on your debts ? I am in the same situation 26% interest on my car want to take out a loan to pay off the car and own it and use the rest of my loan for my medical in total about 17,299 so I’m going for a 17,400$ loan at maybe 8% what do you think
Why would you take on a 26% car loan in the first place?
Why the cash?
"Pay minimum payments on everything but your smallest debt, attack your smallest debt with a vengeance"
This had me relieved, and made me realize i simply am not doing enough to get out of the debt that i, choice by choice dug myself into. Thank you for your insight.
Hey Dave, just a general “thank-you”. I make 80K a year with a 100K mortgage. Was looking at new cars for about 50K and a car loan. Instead I’m buying a 10K used car and focus that money on savings and paying the mortgage off ASAP 🙏
You don’t seem to have a horrible debt to income ratio so I say the median numbers suggest many are not so lucky!!
Nice decision man.
Go open a Roth IRA and max that thing out every month and find a good S&P 500 fund to invest it in (as long as you’re ok not touching it until past 68). It’ll ride the ups and downs of the market but you’ll be surprised how your $ will grow that way.
Good move buddy 👍
You make $80k a year and needed Dave's advice to figure out that at your income level a $50k car was not a good idea? Yeesh...
If more people just learned to be content with what they have and live below means they wouldn't spend most life drowning in debt. Seems simple and it is but most can't do it.
Well true but how many cut expenses as other expenses rise?
@@donaldlyons17 Which is precisely why avoiding debt is so important: when living costs rise, you want that extra money to go to things that matter.
@@Musicienne-DAB1995 but debt is unavoidable if people buy more than they have the dollars for
@@Musicienne-DAB1995 Exactly. Inflation has risen for all of us. But those of us that aren't drowning in debt can handle the inflation as opposed to those that barely can make ends meet. So being out of debt is the answer to surviving.
@@donaldlyons17 That's the point. If people lived below their means, then debt isn't even a problem. It's the people that feel entitled to buying stuff they should not buy are the ones that are struggling when inflation goes up.
I did that with 50k. It was the best thing I ever did. Lowered my combined payments and interest rate.
Are you out of debt now?
@@Musicienne-DAB1995 probably
Dave is right about this. Debt consolidation and refinancing to lower interest can be mildly helpful (assuming you don’t negate the savings by paying some fee or otherwise get ripped off) but it leads to the false belief that you’ve done something significant to address your problem.
I’ll rather make one payment a month with a lower interest rate than spread my money to multiple accounts. Making minimum payments to other cards then taking the majority of my spare income to pay another card seems too problematic.
Dave, thank you for accepting Michelle's answer that they have $75,000 after taxes. That is what the couple has to work with. Thanks for the video. Good luck to us all ✨😊✨.
I love it how Dave encourages people even when they’ve only paid off small amounts. Dave’s a gagillionaire and yet he still has the heart to say “Good, making progress” on hundreds or thousands of dollars worth of debt. ❤ it’s just so lovely that he’s lived this process and has never lost feeling for dealing with smaller milestones.
Impeccable service, *911 Mike Help* setting a new standard for excellence.
@@Jeffersonmcknight-vp3lb dude thanks for this! I looked them up and found their website platform
@@Jeffersonmcknight-vp3lb Thanks I tried them too , they have a service you can always count on.
@@Jeffersonmcknight-vp3lb Thanks I tried them too , they have a service you can always count on.
If you don’t change your behaviour you will never get out of debt.
Amen, brother! They refinance their maxed out CCs, then charge the CCs right back to the max. But they feel better for a time.
They may just need more income because they seem to be spending everything!
Absolutely correct.
Part of her problem is thinking that her husband is the ENTIRE problem lol
Isn't that always the case? Husband is always the problem 🙄
It’s always Jermaines fault
She's just as big of a problem. These things must be done T-O-G-E-T-H-E-R.
You poor abused little boys.
Simple - they are both the problem so they have to fix themselves lol
I paid off all our debt this year & now throwing all that monthly money into savings. I don’t feel the freedom that everyone talks about. I’m thinking it’s because the world we live in has changed so I still feel unstable.
With the interest rates being tied to CC rates it must be terrifying to have huge balances.
Your test will be the next 18-24 months.
Good luck.
We're on the same boat. I've been building up savings but not investing any of it because I just don't trust this administration. I have 401k in investments of course(around $400k), I'm just talking about cash on hand(emergency fund). Around $60k.
@CHANGEUP555 True! I never thought of it that way. Thanks!
@@blackworldtraveler3711 I agree- thanks! May we both endure & conquer what may come our way!
It's about us going through the painful & repetitive motions of paying off our debts, that only then will help us learn & understand our problems & errors we make with financial choices.
I have a friend who is forever in debt and broke. He told me the other day that he was going to get a debt consolidation loan. I tried to talk him out of it because he's never addressed his overspending. I finally told him that if he does this, he has to close his credit card accounts and don't go into anymore debt. He told me no. He said he was going to use the cards to get points. He'll never learn.
I believe Dave when he says that if whatever got me into debt isn’t addressed then I will get right back in there .. been there done that, twice .. make sure the consol is open not closed, so that prepayment is allowed without penalty - if not, I could spend more $ in interest (even with a lower rate) because the consol will wake longer to pay off than accelerated cc payments
Self control is the key. Live on less than you make. Don't buy new cars.
She's gonna call with the same question next year. Covering one fire and starting another 💰🔥🔥🔥
Love it when Dave gets tough.
I love to hear Dave say "restrant" 🤣🤣🍛🍲🥧
THAT is the smartest thing Dave ever said. Playing with your debt doesn't make the problem go away. Poor people talk like they are smart to themselves. Neal
If they are too poor they will always be in debt
@@donaldlyons17 . If anyone spends way more then they make, the interest just makes it impossible to save. Saving is the only way to get rich. Either way you slice it, there's no way to get rich or successful takes effort. No one ever knocked on your door and say, congratulations you are magically wealthy. It hard work. Neal
If “playing with your debt” results in getting you a cheaper interest rate, you can get out of debt faster.
@@b.neallee7042 sometime the conditions make getting hood rich easy so not always hard work because there are so many other factors besides hard work
@@hollyb6885 Only if you don't take on additional debt - unfortunately many people who manage to refinance/consolidate their debt at a lower rate think they can afford to borrow more afterwards.
If she changes her own behavior, her husband will see that and change his behavior too. Instead of "he pays the bills," it should be "we pay the bills."
Exactly.
10% is 10%! 2,400 per year for a couple years is $2,400 per year! A person making $75k wouldn’t scoff at a $2,400 raise, why not give yourself one by restructuring?
I agree.
Ding ding ding. An extra $2400 means you pay off your debt 10% faster. Take the deal of course!
The problem is most people consolidate the credit card loans at a lower interest rate, and then rack up more credit card debt.
That's why you cancel them@@norcofreerider604
The actuaries know exactly how to play the odds so that the lender (card companies, banks, etc..) wins and the person hooked into the consolidation loan LOSES.
This is 100% straight up GAME! Thank you, Dave!
You can’t rob peter to pay Paul.
If the interest rate is way less you can everyday
You can at a cheaper rate
You mean you can't rob taxpayers to pay student borrowers ?
HELP! 😢 I’m tryna make it out the hood so on my UA-cam channel i do food reviews while I’m super high cx
If one had a zero interest rate yes you can
Thanks Dave, with your support and guidance I'm debt free and with paid off mortgage this month. JAY😀
Mesmerizing powerful words by Dave.
I'll have to say I kept rolling cc debt over to no intrest cards for 20 years almost every time no rollover fee til a couple of years ago maybe 300$ but it's all paid off I think I beat the banks on this, probably about 30k overall 300 intrest for 20 year loan .05% anuallized.
Daves a lot more chilled these days . I think lowering the rate makes sence. But it probably screws the baby steps small win affect as all the debt goes in one place
“Can I take out debt to pay for debt?”
Yes if you can get cheaper debt.
I've refinance my house before to get a lower intrest rate. It's just simple math.
lol
Great channel Dave !! Your content is inspiring and has helped convinced me to change my lifestyle. The results are apparent already and it's just a few months - appreciate all you do !!
Debt consolidation really does kick the can farther down the road. Yes it’s true it can free up your monthly income by a few percentage points, but you are so much better off paying off one debt at a time and free up income as you keep working
you will only get out of debt when you throw everything at it.
Not if they don’t have more to throw at it!!!
Yeah, no one is going to get an unsecured loan now at a cheaper rate than an auto loan in the past.
My dad is taking a loan to finish off a loan he's been paying on. Said "after this,I won't have any more bills."
Me:"except for this loan, $30k+."
These people always trying to play games to get debt paid, but they won’t just send more money to pay it off. Or sell cars they can’t afford. Sheesh. Love the DR advice. I’ve never had debt except for my home, and am sitting in a brand new car. Life is good ❤
1:25 so cringe
Thats the holiday mimosa’s kicking in 😅
$5000 @ 0% helped me payoff a $5000 debt saved me $1000 in interest but that’s only half the battle, you have to stay disciplined and have a plan
I guessed her exact age by her voice. Perhaps I should start buying lotto tickets...lol
Haha I thought she was 62, she must smoke. I’m 52 and I don’t sound that gravelly 😂
This is great advice 👏🏽
Should never borrow from Peter to pay Paul.
Thanks Dave! Just leaned a lot from you so I’m gonna pay this debt off without taking a loan.
People forget, if you refinance your debt and save 10%, you only get the full 10% savings if you take the full term to pay off the debt. You can save so much more in interest at ANY RATE if you just pay off the loan faster
I may listen to this video every day for the next year or so🤯
What if she does this and cuts up all the CC? Prob the best route
But there will be a temptation to use CC once it is cleared of back log, but the debt accrues too
Yea definitely seem like one's that can't handle a cc...should be destroyed.
If you go this route the you might as well do the debt avalanche method. Some people get fired up with Dave’s little victories, some get fired up by more mathematical based routes. Either way works. Just get rid of the bad debt and move on.
All debt is bad debt
@@mannyjeanpierre4062 absolutely wrong lol
If it were that simple why are they even in debt?
@@droid2D2C3P0 how is owing someone a good thing. Debt is bad period. Argue with your networth
@@mannyjeanpierre4062 are you familiar with a MORTGAGE sir?
This caller been listening? I'm at the beginning of the video so I may miss something.
Thank you, Ramsey Solutions!
I love watching these even though I already know what the answer is gonna be lol
there's 2 of them and they only make $75K a year?!? that's the problem.
They make more than 75k a year! That’s what they bring home after taxes! So b4 taxes, it’s over $100k plus
She's in Bend oregon--there isn't much there.
@@reese85 Which still is not enough!
@@amireallythatgrumpy6508 I agree! Just wanted to correct the guy on his post
They've taken this same call like 100s of times, but I guess they keep doing it for new listeners to the show.
It's a common problem unfortunately.
I think it's important to keep repeating this information. First of all, everyone's situation is different. Dave Ramsey had to get the precise figures first before deciding whether it was worth it for her. Secondly, there are over 330 million people in America, many of whom have at least one debt (but, let's be honest, probably closer to three or four). Most aren't listening to Dave's teachings. This lady is new to his channel, so it's one small step at a time. But America desperately needs to hear Dave Ramsey's message against debt.
You and your spouse need to change your spending behavior that got you $30k in debt.
I tried everywhere was denied my credit score is 644 and help Thanks
Bankers are notoriously on moving debt but in reality the debt is still there 😂
It is but again if you consulate and change how you go about your finances as he stated then it would make sense. 2k a year savings is 2k a year savings regardless that you can put into that debt then change your lifestyle and you can tackle that thing like it's water and be actually being more credit with higher credit limits. Makes more sense to do as a younger person due to initial credit card interest rates are outrageous vs once you have established credit.
A debt to pay off a debt. Sit this down with your husband and learn the best option that works for you both.
Consolidation is the ultimate form of financial illusion.
That was great 😆 🤣
But she would be saving 10% on interest every year! Bad advice! She should do both but if she can save on interest, why not?
Absolutely true.
I think the point Dave tries to make is not that it's a bad idea, it's that it won't solve the problem, and relieving that bit of pressure might actually make matters worse.
not only saving interest but saving on the monthly payments too
nice video
Drop by drop the whole pond filled up
I'm cutting up my capital one card. I'm working on myself and why I buy crap. ✂️ ♠️. I have money coming in by fall too. Paying off my motorcycle and never going in debt again
Taking out a loan aka debt to pay off a debt is crazy
The title is wrong..... I you take out more debt to pay debt, you are not "paying it off".
Stop charging
Then study Drew G I Hart
& afterwards study redlining & the laws, policies, rules associated with it Re: generational wealth and all the -isms that go along with it, to include systemic, structural, environmental; etc.)
Can we admit that Dave is kind of a jerk here? He goes on a tirade without even asking if they've made a budget, cut down their debt, anything. He just assumes they're being reckless and castigating this woman who just wanted some advice.
He definitely was assuming. I can't deal with people like him. I'm thinking of doing the same and it's not because of reckless spending.
Buy a cheap Honda or Toyota. They may be boring but they run forever.
You’re just moving it around
How can I pay ? 25k of debt when my income decreased to 45,000 annually :(
Get another job or start a side business. The answer is you need to make more money!
It would be a move to do though. She will not pay it off in a year so she would need to cut the cards get to work. It would save more than 2k in the long run.
She's not going to listen.
It’s hard to hear something different 😢
70 k should be one year.
I’m only 20 lord take the wheel
Facts.
They need to sell the most expensive vehicle. She said they paid off two and still have a loan on at least one. If there not out of debt yet they need to downsize.
They seem to want the cars and the house and what ever they already have so nope seems very unlikely.
She's trying to save money, and Dave is saying no.
So what if it is only 2k. 2k is still 2k.
Dave wants everything does his way. He does not care about anything else.
She should do it her way. She will save money. So be it.
These people loves to bring up strawman arguments.
Please listen to the entire video. His view is that consolidating may trigger getting further into debt because the core problem still exists.
Should never do that as Dave correctly said it , if u save ten percent still the debt stays. Debt consolidation is not a solution😢
I would do it! 2k is 2k! She just needs to stick with her plan!
@@morenpark May does not mean it will. How would it trigger getting into more debt?
@@aarvind3901 SO what? It is still 2k.
I am shocked dave recommended opening a only fans account as a side gig.
They should focus on paying off the highest interest rate. That will save the most money.
Well, they should pay off the lowest debt first, by using the snowball effect. Just like Dave teaches.
@@rebeccagutierrez1960 Paying off the highest interest rates first will save the most money. I do understand that many people who call Dave’s show need the psychological boost from getting rid of as many bills as possible, as quickly as possible. It just doesn’t always make mathematical sense though.
Paying off debt, with debt? Yup nothing can possible go wrong
Nothing wrong with lower interest rate.
I've refinance my house before, it's no different. Lower interest is less money loss.
Nothing wrong with lowering the interest rate and lowering the payments
I hate how john sings all the time.
She doesn’t sound very bright 🙄
✝️🙏
Ramsey you don't have health problem because you making fun with dum debter. Haha
I know this video is a year old, but I’m hoping I can get some guidance. September 27th I saw a reel of you recommending a woman to call this “number” concerning her debt. I prayed, then called the number-Americor. I have begun “the Total Money Makeover” and find out I might not should have done this. It has gotten me away from using my credit cards, and living within my means. Next month (6 months in the program) they will offer a loan to pay off all the debt. Do I need to not take the loan and just continue with the monthly payments and putting any extra towards the debt that I can?