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Chapter 1: What is the main topic discussed in this episode?
Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving in storage studios, it's the Ramsey Show, where we help people build wealth. do work that they love, and create actual amazing relationships. Jade Washall, Ramsey Personality, is my co-host today. Our phone number is 888-825-5225. Jessica is in Las Vegas to start this hour. Hi, Jessica. Welcome to The Ramsey Show.
Hi. Thank you for taking my call. Sure.
Chapter 2: What should I consider when deciding to sell my house to get out of debt?
What's up? Um, I think I maybe need some advice, um, on our next step. Me and my husband, um, are kind of torn. He's one way. I'm on the other way. We have been budgeting for a long time, like five, six years now. Um, but we've always maintained debt, uh, just cause I know it sounds bad, but we can afford it. Um,
But we're at a place where we don't want to stay in the city that we've been living in for the rest of our lives. And he wants to sell the house, use the equity, pay off everything that we have, kind of make a fresh start, rent for a while, and then use the leftover equity that we have to put as our saving fund and add to it until we're ready to probably
build a new house and use almost everything cash. Okay, so you're in Vegas and you're going to leave Vegas. Yeah, so our jobs are here in Vegas, but we're looking at probably going to Utah. When? The commute. There's not a set date. Okay, so why not do it simultaneous with this whole thing if you're going to do that? What was that? I said if you're going to sell the house, go to Utah now.
Okay.
Chapter 3: How can I effectively budget to eliminate debt?
Is there a reason you wouldn't do that?
She has an option, too.
I know. She doesn't want to do that. I'm just trying to figure out what they're doing. Well, no, I would love to do that, but we have one kid, and we both, our job, we work 48 hours straight, and so his parents watch our child for us when we do go to work, and they live just down the street from us. So you're not going to Utah? Not until his dad retires.
And then they would probably pick up and come with us. Oh. When is that? And so four to five years. Okay. So this is absolute bull crap. The Utah thing hasn't got anything to do with you selling your house now because four to five years from now, no one knows what's going to happen. Mm-hmm. And so you're not going to rent.
You're not going to sell now and rent for five years unless you're in a really desperate pickle. How much debt have you all got, and why have you been struggling with it for five and a half years?
Mm-hmm.
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Chapter 4: What are the implications of selling my car shortly after buying it?
Well, we've just been paying kind of minimum payments every time just because... How much debt do you have? We have a HELOC and then two cars. So it's about $140. $140 on the HELOC. And what else? No, $70 on a HELOC. Oh, I'm sorry. $70 on the HELOC. Yeah, $70 on a HELOC, about $70 overall for our vehicles. Okay, what do you owe on vehicle number one? About $40,000.
Okay, and what do you owe on vehicle number two? Around $30,000. You have no other debt other than two cars and a HELOC and a house. We have one trailer. That's at $16,000, and that's it. So you have a camping trailer of $16,000.
so you've not been struggling with your budget you've been riding you've been riding high on cars and enjoying these cars and had no ability and no idea to pay them off what's your household income uh we make about 200 a year what's the what's the note on these cars car one what's it monthly
Just curious. What's the monthly payment on your cars, car one and car two? I'm just curious.
One is about, one is I think $700,000 and the other $600,000. There it is. Okay. And what's your house worth? Probably about $8,000 to $850,000. And what do you owe on it? $480,000. Okay. All right.
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Chapter 5: What are the risks of relying on major banks for personal finance?
So do you want me to, you called and asked, so I want to double check. Do you want me to tell you the truth? Absolutely. Are you sure? Yes. Okay. I would keep my house and quit being a couple of $200,000 a year spoiled freaking brats, and I would pay $10,000 a month on this debt and be done in 14 months. But you guys spend like you're in Congress.
You buy anything you want to buy whenever you want to buy it. There is zero control at this house. Okay. And you guys have really got a button down. Are you 28? Yes. Almost like I've done this before. Okay. So, yeah, that's what I was going to – you fit the pattern.
Yeah.
You fit the pattern. You've excelled in your career, and it made you financially lazy.
Chapter 6: How do I handle unexpected fees from my bank?
Lazy. You make too much money to be this broke.
Yeah. That's called skinny fat. Okay. Okay.
So was that too mean for you? No. Okay. All right. You can do this, Jessica. You guys are in a really good position. You have a good life. You have good cars. You have a good house. You have a good income. And yet you're broke. Yeah. And so you're in a really good position to get control of this money monster before it owns you.
Because one flip of the switch on the career, one flip of the switch, the real estate market, and this is going to turn and own you guys.
Chapter 7: What steps can I take if I'm upside down on my car loan?
I know it happened to me when I was exactly your age. Only I was dumber than you. I had more zeros on it than you got on it. So you guys really need to get on a written detailed plan with no eating out, no vacations until we get all this freaking stuff paid off. And or we need to sell all of it.
Yeah.
Not counting the house.
Yeah. What's the deal with that trailer? Exactly.
yeah i think you can pay it off in 14 months ten thousand dollars a month that's a you know you make two hundred thousand you can do that but this is going to mean you have no life except getting out of debt but in a little over a year you could be free how does that sound it sounds really good would you really go do it uh yeah i think we could i think my my husband's just
I think he's more on the, it'd be easier if we just sold and start fresh. It would be, but it wouldn't change you. It wouldn't change the person in your mirror. In this process of 14 months of sacrifice, y'all are never going to be the same. You're going to be a different level of maturity than you ever dreamed of when you come out the other side of this.
You got to be careful with these high incomes. I call it skinny fat because it's that same idea of I've got this high income and it's an illusion that I can do what I want. It's like when you're thin and you think you can eat McDonald's every day and it's not messing you up because you haven't put on a bunch of weight. But meanwhile, it's messing you up on the inside.
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Chapter 8: How can I rebuild my financial health after making poor financial decisions?
Heart disease.
high cholesterol it's messing with your metabolism skinny fat just because it looks healthy and it looks great doesn't mean that it actually is you got to do the right habits no matter what the situation with your income yeah you got a real opportunity here to turn everything around and keep your house and i think you'll end up 10 years from now in a better shape financially if you do that than if you just sell the house and clean off the debt because the debt will grow back because you didn't change this is the ramsey show
I've got some shocking news for you. You won't believe this. Bank of America accused of opening fake accounts and charging illegal fees. Federal regulators said Tuesday they found that Bank of America harmed customers by double dipping on fees, withholding credit card rewards, and opening fake accounts, all of which are violations of various consumer financial protection laws.
Yeah, because it's freaking fraud. And as a result, the Consumer Financial Protection Bureau ordered Bank of America to pay more than $100 million to customers and $90 million in penalties. And the Office of the Comptroller of the Currency also ordered Bank of America to pay $60 million in fines. So let me get this straight.
$100 million went to the customers and $150 million went to the government. Some of the charges are reminiscent of the Wells Fargo scandal last decade that involved opening millions of bank accounts without customer authorization. The CFPB said that Bank of America harmed hundreds of thousands of consumers over a period of several years and across multiple product lines and services.
They found that the bank, which normally charged customers $35 for a transaction that was declined due to insufficient funds, allowed those fees to be repeatedly charged for the same transaction, resulting in customers being charged tens of millions of dollars in fees on resubmitted transactions.
They also said the bank would make special offers of cash and points when signing up for a new credit card, but that it illegally withheld those promised bonuses to tens of thousands of customers. Never even got your credit card points.
And from at least 2012, the agency said in order to reach now defunct sales-based incentive goals and boost their evaluations, bank employees illegally applied for and enrolled consumers in credit card accounts illegally.
without consumers' knowledge and authorization, involved using or obtaining consumers' credit reports without their consent, and it resulted in customers being charged unjustified fees, making hits to their credit reports, and having to make efforts to correct the errors the bank made.
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