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The Ramsey Show

Please, Do Not Get The Extended Warranty! (Hour 3)

30 Jun 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: Should I pay off my debt with variable interest before my other debts?

30.052 - 50.653 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 by Ken Coleman this hour. This is your show, America. We are here to help you take the right next step in your work life and your money life.

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50.733 - 61.463 George Campbell

The number to call is 888-825-5225. And hey, if you're a listener of this show, whether long time or you're just checking it out, if you like this show, this is a free show.

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61.763 - 77.769 George Campbell

And I want to ask you to do one thing that's also free that won't take much of your time, and that is to consider hitting the subscribe button, the follow button, leaving us a review wherever you're listening, and sharing this show with a friend. We like to joke that we have almost no marketing budget for the show because you guys are the marketing budget.

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77.829 - 92.943 George Campbell

You telling people to listen to the show, to check it out, that's what actually works instead of some ad scrolling in your Instagram. And so we so appreciate all of you who have encouraged your friends to listen to this to give them some hope and motivation across their life, whether it's work, money, or relationships.

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Chapter 2: Why doesn't an extended warranty provide more security for a new car?

93.603 - 97.247 George Campbell

Let's get to the phones. James is up first in Springfield. James, welcome to the show.

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99.328 - 99.969 Ken Coleman

Hey, guys. How are you doing?

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100.269 - 101.25 George Campbell

Great. How can we help?

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102.8 - 109.39 Ken Coleman

Hey, so I just had a quick question. I did feel super motivated, so I thought I'd call today. I'm super glad I got through to you guys.

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Chapter 3: What are the risks associated with investing in Airbnb properties?

110.872 - 135.78 Ken Coleman

So my first big milestone on Baby Step 2 is complete. My wife got her VA disability rating and the back pay from February. So as an early birthday present, my birthday is later in July, she helped me pay off the remaining balance on my motorcycle. So that was awesome. So question, I have a mini HELOC for, I know you, I hate it.

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135.88 - 160.785 Ken Coleman

Didn't want to do it, but I needed 16,000 to get a new heater for my house in Alaska when we were still up there. Um, and nobody else would give us that much money. Well, I have, that is about a $12,000 balance right now with a variable APY that caps out at around 10% and it's been capped out for a minute now. Um, and then my truck has about 12,300 left on the loan. So they fluctuate one goes.

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Chapter 4: How can I manage home maintenance costs effectively?

161.086 - 185.629 Ken Coleman

lower and then like two months later the other one's higher just because they're so close um in that kind of situation is it okay to go with the one with the flex or the variable apy versus the fixed just to get rid of it quicker what so you have two loans total There's a couple more, but one of them's a little bit less than that.

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186.109 - 190.053 Ken Coleman

It's right around the $9,000 mark, and that's our next one that we're focusing on.

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190.353 - 191.414 George Campbell

Okay, what kind of debt is that?

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191.614 - 205.868 Ken Coleman

Estimating about four months. It's an embarrassment. Hey, no shame. The traveler has done things where you go to the seminar and you sign up. I can't even remember what it's called.

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206.348 - 208.39 George Campbell

A timeshare?

Chapter 5: What should I consider when buying a car from a dealership versus a private seller?

209.5 - 213.085 Ken Coleman

Yes, a traveler timeshare. Thank you. Okay. It's one of those.

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213.345 - 228.244 Ken Coleman

I've tried to get out of it, but without getting deep into a hole and knowing somebody that I don't even know a bunch of money, I was like, you know what, I'd rather just keep the points because I can at least use them for hotel stays when we go visit family because we're both on the West Coast active military station here in Missouri right now.

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228.724 - 240.699 George Campbell

Okay, so we're knocking out the traveler timeshare, and then you're like, hey, I've got the HELOC and the truck. They're both about the same balance. One's variable, one's fixed. Should I just attack the fixed first? Yeah.

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Chapter 6: How can I negotiate effectively when buying a used car?

241.34 - 255.7 George Campbell

At that point, since they're about the same balance, I would attack the one with the variable since that's the ankle biter stressing you out right now. But truthfully, it won't matter much financially because you're attacking this thing so aggressively. How quickly will you be completely debt free?

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257.843 - 279.897 Ken Coleman

So I'm set to PCS this year. When I left Alaska and came to Missouri, I made a good chunk of change in the tune of about $10,000 of Hey, here's your money back for driving happier belongings across the country and through Canada. And so I'm expecting I'm going back to Alaska later this year. So I'm expecting around the same amount. And that should, in theory, knock out that traveler thing.

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280.017 - 281.901 Ken Coleman

And then my wife now with her V.A.

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Chapter 7: What are the signs of a potential Airbnb market collapse?

281.941 - 296.046 Ken Coleman

rating, she's getting just over a thousand a month starting this month or next month. So that's going to knock out that HELOC in about 10 or 11 months, probably sooner because we're going to throw more on top of it, of course.

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296.387 - 297.428 George Campbell

Okay. What's the truck worth?

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301.333 - 302.254 Ken Coleman

It's worth about $25,000.

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302.995 - 307.361 George Campbell

Man. I mean, here's a scenario, just throwing it out there.

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307.441 - 314.109 Ken Coleman

I've thought about it, but I have a trailer that I have to get some of my belongings up to Alaska myself with.

314.91 - 317.233 George Campbell

Is there any other way to get those belongings out there?

318.614 - 344.267 George Campbell

no so our um could you rent a truck would that be cheaper really a whole lot oh no no no i've looked into that as well that's that's a pretty penny to get like a u-haul or something like that i'm just saying dude i mean if there's any way if you could sell this truck and get rid of the truck loan get rid of the heloc in one fell swoop dude freedom is right there why wait a year or two i'm figuring out the belonging situation at that point get rid of this stuff how

Chapter 8: How can I balance homeownership responsibilities with my personal life?

344.247 - 365.108 Ken Coleman

much do you actually i don't know i'm listening i'm trying to be very polite over here i'm sitting here sitting here sitting here sitting here i'm going i gotta say something you just you're burying the lead here that the truck is worth twice what you gotta sell the truck and get a cheaper truck then you can drive the stuff if that's if that's the only way to get your stuff to alaska could still do it with a cheaper truck good

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365.56 - 370.207 Ken Coleman

I know. As long as the truck can sustain an eight-year-old sitting in the back with the two dogs.

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370.687 - 376.115 George Campbell

I've heard that trucks can hold eight-year-olds and dogs, and you can get a pre-purchase inspection. Yeah, they can.

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376.436 - 391.197 Ken Coleman

You get a $10,000 truck, this truck's gone. You're trying to hold on to this truck. You got every excuse in the world as to why you need to hold on to this truck, and the truth is you could sell it, and you can find a way to get those belongings to Alaska. I don't think you've thought of everything.

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392.797 - 418.129 Ken Coleman

I'll leave it at that idea, just because, like I said, I've thought about it, and I've looked at the market around here, up in the St. Louis area, which is worse. I need to find something in the area that would be reasonable for me to do that. So I'll look at it again, though. How much do you owe on the truck? When I have time. Twelve. Yeah, and you think you could get 25 for it?

419.56 - 423.904 Ken Coleman

According to KBB, it puts it right between 24 and 26, so I average it out at 25.

423.964 - 425.866 George Campbell

Okay, then.

426.066 - 443.181 Ken Coleman

The fact that you've looked that up tells me you've thought about it. Yeah, and you need to look at what you can get for 15 to 17. What can you get for 15 to 17? That'll get you a whole lot of trucks. That'll get you to Alaska. I guarantee you an eight-year-old and a dog will be able to fit in those trucks. Dude, I look at used cars all the time, all the time.

444.763 - 448.386 Ken Coleman

I'm just challenging you on this because George is right. I'm with George.

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