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The Ramsey Show

I Know For A Fact That Money Is Gone (Hour 2)

10 Jul 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: Should I declare bankruptcy to clear my debt?

29.883 - 52.668 George Campbell

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, 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 this hour by Jade Warshaw, and we are taking your calls at 888-825-7000. 888-825-225. This is a show that is about you. It's for you.

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52.708 - 72.992 George Campbell

We want to see you win in every area of your life. And of course, money is a huge part of that. And Jade and I would be happy to walk you through your burning questions, celebrate your successes, and help you make that right next step financially. 888-825-5225. Gage kicks us off in Sacramento. Gage, welcome to the show.

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74.734 - 76.216

Hi, thank you. How are you guys doing today?

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76.236 - 77.237 George Campbell

We're doing great. How are you?

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Chapter 2: How will student loan repayments impact the economy?

78.533 - 102.718

I'm doing well. So I had a quick question. Um, I have about $20,000 worth of credit card debt right now. I'm just turned 25. Um, I also still owe about 9,000 on my car. What I'm calling about is I'm currently in the process of getting into a flight school in San Diego. That's going to be taken up about two years of my time, uh, full time schooling.

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103.289 - 119.15

So I'm curious, what's the best way to go about this debt? I've talked to some people who have recommended like a bankruptcy to just wipe the slate clean. So once I get a career, I'm not still drowning in that debt. I just kind of wanted to get your guys' opinion.

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119.511 - 121.233 George Campbell

Who was some people? Who did you talk to?

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123.336 - 125.544

Uh-huh. Probably not the smartest people.

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Chapter 3: What financial steps should I take after graduating college debt-free?

125.905 - 129.37

I don't have a ton of financially literate friends.

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129.43 - 136.061 George Campbell

Oh, these are your friends. Like you asked broke people for financial advice and they gave it to you. And I said, dude, declare bankruptcy. Clean slate. It's going to help your career.

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138.164 - 141.249

Yeah. I didn't think it sounded that smart all that smart.

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141.269 - 151.285 George Campbell

You knew that was bad advice. I mean, you're here calling us. So I'm glad you didn't make that move yet because it's absolutely not the move you should be making. Thank you. What's your income?

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152.632 - 155.035

I'm making about $48 per year.

155.796 - 157.258 George Campbell

Will that change with flight school?

Chapter 4: How can I prioritize my loans to get out of $140,000 of debt?

160.322 - 173.197

So while I'm in flight school, I don't believe I'll be making income. The school is going to be 100% accredited by the VA. Okay, so you're not paying a dime for the school. No.

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173.418 - 175.701 George Campbell

Wow, that's incredible. That's amazing. Because flight school is expensive.

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176.982 - 178.504

Yeah, it is. It is not cheap.

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179.024 - 185.551 George Campbell

Okay, so school's covered. How are you going to pay for the bills? Do you have any bills at that point? Are they covering room and board?

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185.571 - 194.581

I have a few small bills that could be paid with, you know, just Uber, Lyft, DoorDash, things like that. I was kind of figuring, like, free time.

Chapter 5: What should I consider when managing finances with a sick spouse?

194.961 - 206.113

Are you able to work full-time? So I'm not sure exactly what the schedule will look like. I currently work full-time. I've worked full-time since I was 17. I just turned 25.

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206.654 - 208.896 George Campbell

Okay. How long until flight school starts?

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210.344 - 214.028

I'm planning on starting in January, so about five months.

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214.429 - 218.954 George Campbell

Okay. My question is, can we clean this debt up in five months? You think you could do that?

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221.877 - 234.411

I believe so. Like I said, I just, I've kind of, how I've grown up, I haven't grown up around a lot of financially literate people, so I don't really know the steps to start taking. I just found Dave Ramsey a couple weeks ago. I've been watching him.

Chapter 6: How can I effectively budget for unexpected medical expenses?

234.83 - 239.276

you know, the baby steps and watching a lot of his content and, uh, just trying to get ahead here.

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239.576 - 247.266 Jade Warshaw

Well, we can help you with the steps. Um, just a quick question. Are you going to have a housing allowance once you start doing that flight school for the VA?

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247.687 - 265.756

So, so that's a, that's still in the process. I'm not 100% sure yet. Okay. If I'm not, then I'm, I'll 100% have to, have to find, you know, a real steady source of income. But again, I'm not too worried about that. I don't have any problem, you know, finding a job or working. Do you have any money in the bank? I don't know how to, uh, I don't.

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265.816 - 271.604

I've been living paycheck to paycheck for the past few years now. And most of that is all my fault, just making dumb decisions.

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Chapter 7: What strategies can I use to pay off debt quickly?

271.804 - 275.009

But I want to start getting ahead and getting things together.

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275.87 - 285.244 George Campbell

Self-awareness is the first step. So I'm proud of you for even owning that instead of just blaming everything and everyone else for the problems. That tells me you're going to get out of this thing. So what is the car worth?

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285.264 - 289.289

Yeah, no, this was pretty much just me. You said, what is the car worth?

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289.41 - 289.71 George Campbell

Yeah.

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290.872 - 295.442

I believe at Blue Books. I probably looked it up a couple months ago. Somewhere around $10,500.

295.943 - 310.315 George Campbell

Okay. So I'm just thinking if you really wanted to get out of it, I want you out of debt by flight school so that you have a life and you can work to pay the bills, but you're not trying to also tackle all this debt. And you've got some time. You've got five months left.

Chapter 8: How can I prepare financially for my family's future?

310.295 - 324.015 George Campbell

to really go hard at this thing and work extra and do the Uber and Lyft on top of your full-time job. And if you threw $5,000 or $6,000 a month at this thing, it's gone. So the question is, what is that gap to where we need to make to get $5,000 or $6,000 a month thrown at the debt?

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325.797 - 337.143

Yeah. Because right now, what's your take-home pay? My take-home pay? Right around $2,000 per check. and I get paid biweekly.

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337.443 - 342.971 George Campbell

Okay, so we're bringing in about $4,000 a month, and obviously you've got to make your debt payments. You have rent right now?

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344.593 - 346.235

Yes, but my rent is very cheap.

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346.456 - 346.916 George Campbell

How cheap?

349.14 - 351.583

Currently paying about $600 a month.

351.603 - 359.354 George Campbell

Okay, good. That is cheap for Sacramento. I was like, cheap for California is very different. Like, it's only $3,000 a month. That's cheap. No, good job. Yeah, no, yeah.

359.394 - 364.281

That's great. Like I said, I have been kind of a fool with my money, so I need to start getting that.

364.261 - 384.885 Jade Warshaw

I mean, at the end of the day, when it comes to wanting to pay off debt, it's a pretty simple equation. We're trying to lower our expenses as much as possible while simultaneously increasing our income as much as possible in order to have as much money as possible to throw out this debt. So that's what you're looking to do. That should be the...

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