Draw a Line in the Sand and Say βIβm Done!β
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Live from Ramsey Network, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by my good friend, Mr. Ken Coleman, and we're here to serve you in whatever's going on in your life. Maybe it's the job that you want to quit. Maybe it's that side hustle thing that you want to go do. Maybe it's how do I move up in my career. Maybe it's the job that you want to quit. How do I get out of debt? We're here to answer those questions and help you take the right next step. The number to call is 888-825-5225. Dante is going to kick us off in Chicago. What's going on, Dante?
Hey, guys. I just have a quick question. So I'm $68,000 in debt, credit cards and loans. 50 of it has already been charged off from the bank. The other 18 I'm still currently paying off. So my question to you is what do I do with the 50 grand that's been charged off? I don't know if I should do bankruptcy or like debt relief program or what are my other options?
None of that. And here's why. Number one, you're not actually going to change any of the habits that got you here. So we got to dig into that part of what caused me to go $68,000 into debt with money I don't have. And the other piece is it will destroy your financial life for the foreseeable future. So what I'd rather see you do is go, what do I need to do with my income and my spending in order to climb out of this thing in the next 18 to 24 months? If that was the only option, then you'd start getting creative. You'd go, all right, what can I do with my work? You know, what are you making right now, Dante?
I do landscaping. So all this debt came... I bought a landscape business and I bought a bunch of equipment. So all this debt is mostly used equipment. And so we do landscaping. But the last year or so, we went kind of down. And then winter, we do snow removal. And when there's no snow removal, we went down even some more. So that's what ended up... getting us into debt with work expenses.
How much value does landscaping equipment hold? In other words, let's say you paid X amount of dollars for the equipment, how much can you get for it now?
I could get maybe $20, $25. They're all used, and then the other one was just running expenses. Half of it was used equipment, half of it was running expenses.
How much equipment could you get away with not having? In other words, if you sold it, it wouldn't put you in a tough spot given your current business load.
I mean, I could maybe get 20 now and maybe still move forward.
Bro, there's the answer. Without hurting the revenue for the business?
Yeah.
Dude, 100% go do that.
That's the 18 right there plus some. Who put this idea of bankruptcy in your mind as a way to get out of this?
Um, uh, just, I just been doing my research myself. I've just been Googling and trying to see what I can do. And then I've like, that was one option was bankruptcy. Like I had 25,000 in the credit card, 25,000 on the line of credit, and then 10,000, um, personal loan. And then I have another, and that's 50, those fifties has been charged off. And then the other 10 is on another credit card that I'm still currently paying. And then the eight grand is another credit card separately also. And I'm also paying that down as well.
Now, you said you were using it for business expenses. So your business wasn't profitable and you were artificially propping it up with debt?
Yeah.
Was it profitable now? Where does it stand?
Now it's profitable, yeah. What's it making every month?
What's the net profit?
Net profit, I'm not sure net profit at the top of my head. It's roughly like 120 gross. I'm paying myself like 40 grand at the top of my head. And I have like one part-time employee.
That you pay out of the 120 gross?
Yes.
Okay. So how do we get this business to where you can pay yourself 60? What must be true?
I'm not sure.
No, no, no, no, no. You know the answer to that. You may not know how you're going to do it, but what's the answer? Is it charging more clients?
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