Afraid To Use Savings To Pay Debt!
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- Опубліковано 24 лип 2024
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Hi Dave!! new to your channel and LOVE it!! I need your advice....I am married (husband has stable job for over 23 years) and self employed personal trainer (low income but high flexibilty as my mother is halfway across country struggling with cancer complications for past 6 years and with flying back and forth dozens& dozens of times to help her and roller coaster ups and downs with my income (last year i had the worst of my 23 year career and lost nearly 70% of my clients/income for over a year. I am building my clients back up (since last summer i am back upto about 80%) I have some savings (finally able to build emergency fund of 6 months of my own personal /business expenses as my husband cannot support all of my monthly expenses). I have my final credit card down to 2K, and about to transfer last business loan debt to 0% APR for 18 months (4,700)so i can be debt free and then begin stashing more money away for retirement. My savings is about 21K, should i just pay off the 6700 (even though all it is on 0% interest for another 18 months?) or whack at it slowly while i continue to stockpile cash (i feel more secure having upto one year of expenses saved since i do not have a steady paycheck where i know exactly how much gaurenteed income i have coming in every month. If i had a regular job, i would pay it off without blinking. But after the severe financial hit in past 5 years and severe income hit last year, my income is not stable and the only way i see ever finally get out of the roller coaster cycle of going into debt , paying it down, then income drops, and i go back into debt again, is to save enough so it will not happen again. My fears are getting in the way of me seeing this clearly. Your thoughts?
Is there a way to pay cc bills without the interest? Do cc companies have hardship type of program you can avail? Thank you Dave.
@@ghiaferrari7585 depends on the company, but yes there is. Ask the cc company directly.
I want to call in but I don't want to sound like an idiot 😂
You already helped me so much! Im debt free thanks to your videos!
The worst feeling ever is working hard for your money seeing your account grow then having to use that money to pay off debts. But it’s totally worth it when you’re debt free 🙏
Yeah. I have that same feeling recently when I used my savings to clear my credit card debt. It felt refreshing though after being freed from that debt.
No sir ... I must disagree. There are much more worse feelings then that. You are experiencing the dizziness of Freedom. Freedom scares more people then the possibility of pain.
@@freedomworks3976 Well, I am free and happy. I don't live in the nicest place or drive the nicest car, but it's nice to have more money to know what to do with it.
@@RizalBoon That just doesn't make sense to me. How can you save while creating credit card debt??? Why don't just use the money that goes to savings each month to pay of the credit card each month? That way you're not paying interest. People are weird and stupid sometimes I guess.
I feel the same same
I paid my car loan an hour after seeing this video. This young lady was literally in the same situation I was in. Dave finally gave me the stones to pull the trigger.
Congratulations! 🙏🏼
Just took 43,000 put of my savings and paid off my debt. Left with $3000 in my account, following the program and trusting that we will survive.
Wow! That's amazing! Congrats!
Congrats man!
Nice. Its way easy to save money fast when you're not paying any debt!
That’s awesome!!
You will survive..and life will be better without debt
I had $48k student loan debt in September 2018 when I learned about Dave Ramsey and his baby step method. It took me almost 6 months to decide and use my savings to pay off. As of February 15, I’m 100% debt free and I sleep well at night.
Zqueen congratulations
You're on the way to becoming wealthy!!
Congratulations!!
Congrats man!
You went to college right? So you probably know math and interest rates. I just don't understand why people wouldn't use their savings to pay off debt!! Even more, how can you save while racking up debt???? Just use your savings each month to pay of debt each month, that way you don't pay interest. Why do you need Dave for that VERY simple equation.
This is my call and to answer questions. I am 27 years old. I graduated my masters program two years ago. I was a teacher for a year before becoming a counselor.
Before this call I had more saved but payed off $12,500 in debt. On average I save 18-19k a year. But have been paying other things down. Thanks
Update: sorry for the long wait but,... I am debt free and now am fixing up my property so it can become a rental property ❤️
That's awesome Monique, I am same I have two kids and a spouse, we have an emergency fund and this is a tough situation to be in. My hubby doesn't want to touch the savings but I still have student loans left and can't really move forward on goals until its paid off or at least wayyy down. Kudos to you for calling in!
ThatNATLife the reason I felt that way is because if I spend the money and the bill isn’t paid off and an emergency comes up. Like unemployment or whatever. Then I will have none extra cash and still have a balance on my student loans
Great job Monique! Please take his advice and knock out your student loan before the end of 2019! You can do it! If you wanted to get real aggressive you could sell your car...buy a 5000 dollar car and use the rest to pay off your debt!
You got this, Monique! The first time I made a four-figure payment on my student debt, my chest got tight. Paying it down frees up your future money so much though.
@@mentalhealingwithelaine5252 I feel the same way. Has it worked
Be afraid of having payments.
G L So True! Who wants to live with shackles in this world?
The sad truth is that the majority of people look at living with a life full of payments as a normal lifestyle 😔🤦🏾♂️. Smdh...
So you don't pay GAS...ELECTRIC...CABLE...TRASH...WATER...SEWER...RENT/MORTGAGE...NETFLIX...ETC every month???
KENT ROBINSON it’s not DEBT!!!
@@GoogleAccount00 So you paid all your utility bills for next year so you have no debt???
Pay your debts, i learned the hard way. It will eat at you.
I'm tyring to get debt free at the moment. As annoying as it is to see my money go to it every month, I know the end result will be worth it.
@@callamcodes keep up the good work & stay focused!
Yep. I've foolishly kepth my room mate (student loan) for almost 20 years paying it slowly. Then i get focused and it was GONE !
I’m in the same situation.... I have $15,000 saved and owe $4,000 on a vehicle,and scared to pay it off.... I feel more comfortable putting $1,000 a month towards it every month until it’s paid off........it’s hard to save money and I don’t ever want to be broke again or live check to check.....
Just pay it and than monthly put it bak it will be like the snap of a finger that u never touched it with so little dent I mean I rather see u pay urself monthly than to pay someone else monthly
So you have a good instinct, but it can be difficult to see that it's holding you back.
So true.
It's always good and a peace of mind to have money in your savings, I dont care what DR said ,when u use all your savings to pay off all your debts, it's never good to leave yourself broke, what if u loose your job, what if u get sick or what if your job downsize, anything can happen and to have some money as your safety net, for your peace of mind, if u put 1000 on your bills, u put 1000 in your savings, then u will be 1000 going down on your dept and 1000 going up on your savings, never leave yourself broke, I listen to Dave Ramsay, not every thing I will agree with , he makes a lot of sense but still u have to follow what works for you.
I just paid off my student loan because of this call, thanks Monique and above all Mr Ramsey :)
Jeaneth Azcué I’m glad to help
@@mentalhealingwithelaine5252 how were you able to get a phone call with him?
@@mentalhealingwithelaine5252
Saved $26k in savings
Income $71k yr
$48k total debt
Student loan $34k
Auto loan $14k.
I would at least pay the car off n full 1st with the money n savings & the car payment I'd do half n savings to reup & half on the student loan debt..
Congratulations!
Did you pay off that car of yours, and maybe some into your other debt ?!?!
I used to have this fear until I took the plunge. I then immediately realized how STUPID I'd been for valuing a savings balance over the reality that I was paying interest on something.
Interest is the devil to me. If I'm hesitant to pay off the principal, I'm definitely not when it comes to interest. Gotta get rid of that immediately. I'm still in school and already making payments to get rid of interest because I don't want none of it.
I've never related to one of these calls more. I'm a natural saver, to the point that I drive my wife nuts with my stinginess. We're doing okay on income and savings, and I want to pay our debts off, but I have this irrational fear that it will wipe out our savings and we'll end up broke. I grew up broke, and as a dad I'm determined to never do that to my family. Very glad I heard this call.
EDIT: Thanks for the thoughtful and encouraging responses, everyone! We have since paid off our home and are debt-free! It was scary but worth it to do.
either way your net worth is still, money you have minus your debt. that money isnt really your cause you have debts. and if your debt is greater than what you have you're broke! just pay it of. and start saving. and loosing the purse strings a bit. you can do it!
Chewable Jim I’m in the exact same boat. Decided that it needs to be paid off but keep dragging my feet because of be fear.
Same
Pay the debt off then focus on saving🙈
Jim you sound just like me. I think I’m going to just pay off some debt from my savings
I can relate to her so, so much. This was me just a few months ago. I struggled so much with letting the money go. But, I did. Making a five figure debt payment took my breath away. But, I'm still breathing. And, I'm also debt free. She can do it.
Malika TheThrivingLady i just did and felt the same way wow still a little jittery
wow! That's awesome! Congratulations!
The more I read comments like this, the more I am building up the confidence to let the savings go and trust the process. Thanks for your comment.
Yess!
@@stjackso17 Amen! I agree 100%! I am at the very beginning of my journey and my nerves are a wreck! Thank you for sharing
“If you have a negative net worth, YOU’RE BROKE”.....
Yikes!
Wow Dave gave her some really great advice!!
*Takes mental notes for future self*
👍🏿🇺🇸
Biggest thing that stuck with me was Dave saying “you feel like you’re not broke right now but you’re broke” y’all I was holding on my savings up until earlier this week. I went ahead and kept the $1k recommendation but he’s right. When I had a “safety” net I didn’t feel broke but now I feel super broke and have a super aggressive plan to get debt free
The interest you are paying on debts is much higher than what you will make in a savings account. That's what pushed me to pay of my debt using savings. Now it's easier to save when you have no payments
Roxanne Nompmoht for my student loan yes but my car no. My car is 1.8% while my savings rate is 3.8
Really depends on the interest rate....
@@mentalhealingwithelaine5252 Did you factor in other fees ? like for the account etc. ?
I get how she feels I had a similar situation but after I wrote the check and cleared the debt and had hardly no money left I actually felt much better. Because I knew everything I saved going forward was mine mine mine
I think she has a correct instinct: Dave's $1k emergency fund really isnt enough in 2019; I feel like 3k is a better minimum for safety
I was going to type this same thing. The funny thing is that I am not even American. I live in a 3rd world country with a far less cost of living and $1000 isn't substantial for an emergency stash for me.
Agree. I tend to think of it as a months worth of basic needs is a good way to look at it. IF you were to lose a job, you would have your rent and food covered and have a few weeks to find new employment.
I feel like $6000 is sufficient if you have rent, old car and perhaps can be out of a job for 3 months.
I like to aim for the amount of your expenses for 3 months as an emergency fund if God forbid something happens.
The $1000 is just sort of a random number which is what I don't like about it. I'd say have a bare minimum of 10% of your annual net income saved in order to meet at least some emergencies. $1000 just isn't going to cut it for most people.
No debt is the # 1 priority. Get there. You can truly start saving after that.
I have to say a $1000 emergency fund might not be sufficient though for some families in HCOL areas.
@@vadimnobel7199 that number is pretty low now a days but nice first amount to get into savings
But if I want to use my 401k to do that and I'm not making enough to pay off my debts fast enough, I get told I'm wrong!
@@nicolettehare3322 you will be surprised alot of people cant even do that
@@cakedupkevin depends. If your 401K isn't using PMCC's id recommend you do that as 7% a year vs paying 30% apy you see the mathematical issue. If your investment strategy is theta gang and using poor man covered calls you're probably making close to 30% a year if not more.
Ahh I was right here in the beginning of paying down my debt on my debt free journey in baby step 2. But once you do it. A total other relief happens! 🙌🏽👍🏽
Was in this situation last year. We took out ~$175k and paid off all the student loans and consumer debt. It was the best decision we have made. Now a year later and we are only about 3 months out from paying off our house! We are looking forward to being completely debt free!!
jamesb93612 how did u come to the decision to do that? I have 70k cc debit. Lawd. And I don’t know what I spent it on. I have been going back and fourth with using my savings to pay this off but I am sick about doing it. What made u bite the bullet
+ james - that comment aged well. Corona crisis hit - but if push comes to shove you can stay afloat with a reduced income. Stay save stay frugal ;)
This is exactly how I felt last week, I payed all of my debt, about 10k with what I had in my savings account and now I’m just focused to building my saving back up again.
Good job man!
Man you motivate me !!!
I like the idea of keeping $12,000 in cash and pay off the loans until you have a $12,000 balance left . . .then pay it all off and be instantly debt free. This keeps you with a safety net.
Man this guy is good. He asked her what she did for a living, absorbed the information (it would've gone in one ear and out the other for most ppl) and flipped it with a response that blends his expert financial advise with commonly used rhetoric in her field of expertise.
I just started watching this guy yesterday and I cant stop.
Paid my truck off today! Thank you Dave!
He explained this to her in her language so perfectly. Great job, Dave!
I love Dave's point. Your broke but you dont know it. Having debt gives you a negative net worth. So much wisdom there.
This used to be me...when I started the dave ramsey plan I had about 13k in debt and had the money in savings but did not want to put the bulk of my savings on the debt...I eventually did it, but whew it took some convincing (which I did by continuing to watch dave ramsey debt free screams and other videos from people paying off debt).
You were left with no savings after? That would terrify me so I understand where the caller is coming from
When I started listening to him I was 28 and almost a millionaire. Don't stop learning just because you are well off!
Congratulations
Congratulations! Any updates?
Thank you Monique and Dave - this is almost my exact situation. My savings is my "mancoat" and security, and it is extremely frightening to use these funds to pay off debt. I am listening and following Dave's suggestion.
This man is incredibly motivating. It was clever how he used her own professional training as a counselor to inspire her.
Dave 2024!
It surprises me that people don’t understand that when you sign away your money like Dave says, it doesn’t matter if you have a huge savings account. You’re still in the negative.
Stop looking down and judging people. It's spiteful and people don't like that. Come on
A counselor counseling another counselor. 😘God Bless you Dave!
There is also an interest rate question.... you get, say, 2% interest on the cash from your savings. However, you are sitting with from 5% to 20% of interest on your debt. Do I need to say more?
This lady sounds like someone I want to be. You can tell that she is highly intelligent and sophisticated. She's successful but she also has her struggles.
I recently paid off all my debt and I felt the same way... I don't wanna use my savings to pay it off.. but I did it and now I am restoring my emergency funds now and fast
It's fast because you have no more debt to pay monthly. That's an aspect people don't thinking about if they have enough to pay the entire debt or most of it.
Congratulations! Any updates?
You don't have $26k In the bank if you owe $48k.... You have negative $22k
Exactly!
Yeah but she could throw twenty at the debt and still have a safety net of sorts.
She’s on the right track. The student loan was an investment. Well done to her. She has a great future if she carries on with this behavior,
A good way to look at it.
Dave has always been a financial savior. I am in the same situation with the caller, I might as well pay off all my debt.
5:40 is IT. Money in savings make you feel like you’re doing “ok.” Taking that leap is hard.
Exactly.
I'd be more afraid of my debts taking away from my savings haha.
I watch videos like this whenever i am afraid to touch my savings! NO DEBT IS THE GOAL
Think about it like this. Don't be afraid to pay off your debt even if it means you are low on cash. The only reason why you want cash is to avoid debt. Guess what, paying off your debt avoids debt.
If you pay off your debt, then an emergency comes up, then go into debt if you have to. But don't not pay off your debt just to avoid debt. It makes no sense when you think about it.
That's the rational way. You're right. Most fear is irrational. I could pay off my mortgage, but have very little left. Putting those payments back into savings would take me a couple of years to build it back. I'm retired. So, yeah fear...🙂
Credit card debt would be much worse than the debt she was talking about. Student loan and car debt usually don’t carry a 19% interest rate.
I love the way you worded that. Wow.
That’s why the first step it’s an emergency fund
70,000 a year in California is not a good living at all.
This advice really a turning point for me ,recently i used my saving to pay my car debt. These thinking never been a choice before but now i am glad i did it. Thanks Dave!
I understand what she is going through partially. When I bought my condo it was painfully taking all my savings for the down payment.
The truth is though, the money in her savings account isn't hers. She already promised it to the loan companies
Oh my goodness! Why have I never thought of it this way!!! Thank you!
I don't think I could ever use all my savings to pay off a debt
This is one of Dave’s best calls. Simple but very deep commentary about the correct mindset.
Loved that call. I know the stress of not having anymore savings. My emergency fund is 8k (including a 5k car sinking fund) and i still have 18k in student loans.
Good clip - I just took $5k from savings and paid off the parent plus loan!! $100k in 25 months🥂🌈💪🏻
Ana Castilla Congrats! You paid off 100,000 in 25 months?
wow! Congratulations!
You’re amazing
This video blessed me!! I needed to hear this. Thank you!
I have a similar fear Dave. My husband just beat cancer and we have just enough saved to pay debt, $10,000 but I’m afraid of using our savings Incase of a recurrence. We’ll need that money If he needs to take more time off..
Dave would probably tell you it's ok to pile cash in that situation.
But what about getting a loan then if you can't afford it?
That’s what I exactly did ... I paid off my 26k car loan with all my savings and I have 3k left after all. THANK you Dave!!! You changed my life💪👍
She is awesome and giving her two ideas and why to do the first idea was really well done by him
Sincere thanks from Romania.
The problems of the people of the USA are like looking into the future of Romania.
We learn a lot from your discussions about debt, savings and useful investments for those without an entrepreneurial mindset or business. Discussions are great for people - employees - and how they can evolve having a decent living in society.
So in the shortest time he can put his head on the pillow quietly without fear of tomorrow.
This is my favorite call! I am in a similar situation.
I always pay everything off. That way with less in savings I know to spend a lot less and not go shopping until I’ve used all in the fridge, freezer and pantry. You have to go on a financial diet and would have spent a lot more had you not paid things off and then that catches up with you. Prevent food waste.
It’s just so scary not having that stash because you’ve been down that road of not having it and that’s when everything decides to brake down , needs replaced ect. then you don’t have that extra little stash . That’s my fear as well.
Personally would sell the car, buy a decent used one, and use the rest on the debt.
Depends on if you bought the new car brand new... I’m not selling my car that I babied for a used one that was probably dogged out and trashed. Nope.
@@JosephQPublic Oh I see.
@spirals 73 IF repairs are an issue yes. But we aren't even sure if she NEEDS a car. If she doesn't she could sell the car and tough it out using public transit and flip all the money on the Student loan instead which is quicker then doing both. Sure she would then have to buy a new car BUT the woman on the call is in the comment section and she says she saves about $18,000 a year so she can drop $6k-$8k on a good used car instead of a junker or even $10,000 on a great one and be fine as she will be debt free zero payments.
Appreciate the knowledge Dave, I swear you make a lot of sense.
Having a savings with debt is backwards
There was an old security guard at my college who would always greet you with "Better than I deserve". I understand where it comes from now, but everyone thought he was an ex-convict or something because it's a self deprecating statement.
I like that she answers Dave's questions directly.
I’m the same way . Just recently paid all my debt off with my emergency money . I just had to bite the bullet to do it . Now it feels great to only have a mortgage payment.
This was so needed I feel the same I just paid one debt in full today and can pay another but so scared to pay it I will not have a savings!!! Thanks Dave
lageneice it makes sense if when you pay that debt off you will close the account. I just have a hard time putting all my money on a debt that I still haven’t paid off completely
Great psychology moment here. We (people) perceive money on account more important than money we owe. That's why this lady was afraid of using savings to cover debt, although money=money. In fact the interest rate on debt is higher than you get on savings. So it makes more sense mathematically to pay of debt.
" I've got your back , I will catch you win you fall "
Paid off my student loan of £2990 due to 3 jobs and gezelle intensity in only 3 months. Still over paying my mortgage and investing during that 3 months. Over here in England. Thanks Dave for the guidance /videos and book... Still got my emergency fund of £1000. I'm deb free!!!
Never met another Briton around here before. They always recommend that you don't pay off your student finance because it will get written off. What inspired you?
Saving money in case anything happens. Hello, something has happened. You're in debt.
I new here because I'm willing to become debt free someday and I appreciate this guy honesty and knowledge
Cool lady and what a nice problem to have!!!
My financial advisor told me prior to paying off extra on debt to save up the emergency fund. We own a hold and I run my business out of it. My advisor felt that if something were to happen to me and I was unable to work I could potentially lose the house if I didn’t have an emergency savings.
I fully understand long term it makes sense to pay off debt and snowball everything together but what happens if the house needs a new roof and my 21 month old is freezing in -20 degree weather in the meantime?
That's banking on an IF. All that time you were saving up for the IF it didn't happen now you are spending more time on top of the saving time saying "but what IF". So for example, suppose I had $6000 in debt I wanted to pay, and $6000 in savings and I save $1000 a month. It took me 6 months to save that $6000, and in that 6 months the IF never occurred. Basically you are then going to sit on the $6000 plus you now how to build more money for another 6 months to pay off that $6,000 in debt because you're afraid of the IF so instead of being debt free right now and paying the $6000, you're sitting on it for a year from when you started saving and any active debt will actually grow if it has interest attached. You still have that $1000 a month you can use to cover any IF's that pop up. Not many people have a $6000 catastrophe that will randomly happen, but a $100-$1000 one is common.
Thanks a lot Dave, I had this doubt
I'm in a similar position.. tbh it feels so good to look at all that cash you have in your account.. i worked hard to save that money up. Part of it what I have was to go towards down payment for my home..but in reality I need to take care of my debts first before even qualifying for a mortgage. I just started the snowball affect...should have credit card 1 paid off within next couple of weeks...then 3 more to go. final debt is my student loan which I'm not too worried about but know I need to clear it up[
Pay your debt! ❤️
God bless Monique. I wish her wealth and success.
Fantastic advice. Thanks boss.
This was great advice for me!
This call made me put my savings toward my CC especially since I just calculated my interest for the year and it made me furious.
Calls like this are always fun to listen to. Not even worried about this lady. She's gonna be better than fine within a year from that call.
We just used some our savings to pay off two of our three student loans after watching this video. Only one left and we are debt free. We are keeping some aside for emergencies and contingency. After we save up enough, the next loan is gone!! Yes!! 🙏🏻🙌🏻
Glad I came across this video. I'm about to pay off my student loans now along with this medical bill.
OMG I am so going thru this. It was like Dave was speaking directly to me. I have savings that can knock out a student loan, but man I do not want to part with that savings!
I made this mistake. I took out a student loan even though I didn't need to just because I was afraid to dip into my emergency fund. I ended up repaying the loan before I graduated and I probably never would have needed to touch my emergency fund at all. I ended up paying over $500 in interest. Gee, I'd like to have that $500 in my pocket now!
She basically asked the same question I had. I can pay all my debt now but would only be left with a few grand after.
Think of your situation this way: if you have enough in savings, you can pay off your debt.
But if you pay all debt off. How much a month could you save if you had no debt? You would be able to regain that loss within a few months.
This is great. Very well said by painting the picture for her how she's broke because of a negative net worth but softening the blow by admitting she's smart (which she is). I would have even added how paying off the car will put that much money back in her pocket every month to make it an even easier decision, because now it seems like just throwing 26k away but that's not entirely true since she's freeing up whatever her car payment is.
Very familiar dilemma, you think you're burning money by throwing a large lumpsum at debt. But 3 years ago, when I realised that no matter the size of payments to the bank, the loan would take just as long to pay off, I just began wondering what would happen if I borrowed from savings and repaid myself with interest using the same loan terms. In less than 6 months I paid myself back the sum of money I used to settle the loan amount. If I hadn't settled the debt, I would have taken 32 months to repay the bank. It's just past the time I would have taken to pay the bank in full. Incredible to think I was debating paying myself or the bank.
“Tarzan wouldn’t even survive that puppy” 😂😂🤣
"Don't eat out or go on vacation" might not be acceptable to someone in their 50s. If I don't do ANYTHING fun now, when will I do it? There is no "30 years from now you can" whatever.
Nobody NEEDS to eat out and go on vacation. It's only until you're debt free then you can do whatever you want.
If it takes you 30 years to pay off your debt, you're doing it wrong.
What did you do in your 20's, 30's, and 40's?
Just did this!! Had 11,200 left on my car loan. 9K in savings and 3600 in some stocks. Decided to cash out the stocks, pull just 6500 (2500 min for money market account) from my savings and pay the loan 10,500 in total. Going to pay it off completely after I get my paychecks this month. It’s scary seeing that money go but ready to knock this car out! Worst comes to shove I can always sell my car if there’s a real emergency.
Just paid off my car after watching several of your videos all day! I was so nervous to move that money out of savings but now I'm so relieved to not be in debt for a car!! Thanks, Dave! 😁
👍🏿🇺🇸✊🏿💯😂 Now That’s how you Reverse Council!!
Great advise
I love option B. I know it isnt the guidelines but it just strengthens that insurance.
Thanks for the awesome videos
I’m in the same boat!! Except I make $50,000 less😂
I swear this has been my biggest dilemma for the past 5 yrs
Paying your loans off asap. It will save you having to pay interest on the loans.
Same situation. Just car and student loan w/ almost same savings. It is scary to pay it off and leave the account feeling depleted.
According to Dave there is good anger, good fear and good disgust... but there is no good debt.
I’d love to hear a followup of this interview considering current circumstances (covid)... never really understood the $1000 emergency fund. Seemed way too small
Trust me when you keep on making debt payments you feel like being owned by someone else. Better to have a years worth money as a safety net and payoff loans.