Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. George Campbell, Ramsey personality, number one best-selling author of the book, Breaking Free from Broke, host of The George Campbell Show, massive YouTube property, and all-around network star here at the Ramsey Network. She's my co-host today. Open phones at 888-825-5-225. Steve starts off this hour in Atlantic City. I'll get it out. Hey, Steve, what's up?

Hey, guys. Take my call. Thanks, George. I want to thank you guys for what you're doing, first of all, because not many people are financially smart, I guess you would say. And so what you guys are doing is awesome.

Well, thank you, sir.

I'm 41, and I'm really not planning to work until 60-some years old to retire. And so I have retirement, and I have investments that aren't retirement. And so I'm investing heavy right now, and I feel like it's so overinflated at the moment. And being that I'm not completely out, I have significant money in right now, would it be wise to just collect 5 % in the money market and wait for a correction? I know you're more of a slow and steady, just keep putting it in every week, but it just seems a little crazy right now.

Well, generally speaking, the reason it seems a little crazy is just the first time you have stood on top of that mountain. If you'd stood on top of that mountain several different times, it wouldn't feel as crazy. It's an emotion that says, I've never been here before, and And human nature, I think there's something about there's a black side of human nature, a dark side of human nature that says, Oh, it can't stay good. Nothing can stay good. It's like if everything's good, I have to look over my shoulder. Something must be wrong. And that's human nature, but that's an emotion, Steve. There's no data that says we're due for a correction. If you had called me five years ago and I said, Oh, yeah, we're getting ready to have a correction, you would have missed out on a 90% rate of return. In the last five years in the S&P 500, your money has doubled in the last five years. Why do we not think it's going to do that in the next five? Well, it goes up, it goes down. In '22, the market was down overall. In '23, it was up 27%.

It's up 18% already this year. But that doesn't mean that it has to correct. Because there's actual income and assets backing the companies that create the stock price. You don't price Home Depot stock based on a wish, a dream, and a prayer. Home Depot actually makes money and they own stuff. You don't price Apple stock based on a wish and a prayer. They actually make stuff and make a profit. You can use those numbers to determine the value of the company and therefore the value of the stock. That's where this is coming from. It's coming from the prosperity of these companies, George.

What's amazing, Steve, if you actually look at the data, if you go look at right now, the S&P 500 returns, the last major dip was COVID. And guess what? March 2020 the dip. It came back in July, back to record highs. You got it just the old saying, it's true. It's not about timing the market, it's about time in the market. The best investors out there are the average ones who just let it ride.

Yeah. Please don't try to time the market is the moral of this story, and that's what you were asking about. It's one of the reasons I tell folks to be in with a smart investor pro, because all the data tells us that someone who has a good broker in their corner, not not somebody who's a shyster, but somebody's calm and data-based, and they'll teach you, talk you off the ledge, talk Steve off the ledge. They tend to keep you in the market. They tend to say, Don't get out, don't get out, don't get out. They don't I'll show you up and go, I'll be scared. No, don't get out, don't get out, don't get out. Set it and forget it, set it and forget it. Time in the markets more than timing of the market. That's a great phrase. I love that phrase. All the data says, for that reason, if no other reason, a good broker in your corner, a good smart investor pro in your corner makes you money because they keep you from... As Churchill talked about his depression, he called it the black dog. The black dog inside of every one of us is telling you, get out of the market, it's going to crash.

Get out of the market, it's going to correct. There's nothing that indicates that.

Well, what causes a lot of that is the inputs you have in your life. I'm guessing Steve's watching some headlines and it's going, We've hit record highs, but what's around the corner? What's going to happen with this election this year? What about the Fed and the interest rates? It's all got to come crashing down eventually.

There's click bait every day since the internet was invented. Every day there's click bait that says, Economists predicting the end of the world. Quickly read my article.

I love this. Those guys are my favorite because edition on sale.All these best sellers and many other things on sale for $12. Be sure and check them out the summer Black Friday sale, ramseysolutions. Com/sale ends midnight. Tonight. Do not delay. Thanks for being with us. Amber's on the line. Amber's in Detroit. Hi, Amber. How are you?Hi. How are you doing, Dave?Better than I deserve. What's up?Okay. Basically, I went to court yesterday as I was from the support by Capital One on the behalf of the lawyers based on Capital One, so they directly sued me. The lawyer approached me in court to settle out, but the settlement was for... Well, the debt overall is $7,000, which is being a court fee. They pretty much told me I could settle out for $6,000 With interest that would incur if I was on a monthly payment. I was trying to do a lump sum, but I can't afford that. I'm in economic hardship, and I explained that to the lawyer, and they're playing hard ball, and I'm trying to find out how can I go about settling for a lower amount.Well, wow. In most states, Michigan, I think, is one them. They can harness you your wages, but it'll take them a while if you don't do anything. What happens is the lawsuit, they've offered you a settlement, and in the meantime, they're going to take a judgment. The court is going to rule that you owe the money and didn't pay the money judgment. When the judgment becomes final, at least 30 days will go by, if not more, before they can execute on the judgment. Executing on the judgment means that they would scarf money out of a bank account or garner you a wage if your state allows those things. Texas, for instance, does not allow that. But I'm pretty sure Michigan does. I'm not an attorney in Michigan, so I'm not an attorney anywhere. But that's the type of thing you're facing. So there's nothing on fire. Nothing's going to happen bad to you in the next 10 minutes. It's going to be a month or two or six or a year. Okay? Does that make sense? Okay. See, one of the things I found is if I can get the panic off, then I can get my edge back in this negotiation.You went down to court, which is so unusual. I'm really shocked that this moron only offered you a six grand settlement on a $7,000 balance. you. I'm very nervous, actually.I bet. But it's funny, though, isn't it? I mean, it's like the first time I ever got a speeding ticket, and it's first of many, but I went to traffic court. And traffic court is like nothing. I mean, I was more scared of my sixth grade teacher than I was traffic court. Traffic court is a joke. You go in there and they go, Oh, you showed up? Okay, we'll waive the ticket. Your first one. Most places, they do that. You bother to show up. Did you have that experience? It's like you were all scared and you thought you were going down there. There's going to be like a trial and they were going to have a jury and Matlock was going to come out or Perry Mason or somebody. It's just like nothing. You're down there in the middle of a grinder and they're just making hamburger meat.Taking a number at the deli. All right, next.Did you notice that?Yes.There's really no drama, is there?No.Not that I imagine. Yeah. So not like your brain had told you for the three days before you It down there. The same thing is true now of settling this, okay? They put this out there as if it's their only thing they're going to do. Their chances of actually collecting anything from you, statistically, is zero. 98% of the people in your situation end up filing bankruptcy or just disappearing, and they can't find them. They collect almost none of these judgments, and they know that. They were so shocked that an actual human being showed up. They didn't know what to do. It never happens. All that to say is this. You owe $7,000. You could probably settle that for two grand I want you to scrape together two grand really, really fast. What do you make?I have two grand. Actually, I'm an independent contractor. I do $5,000.You do have $2,000?I tried to set… I ended up I was calling them back yesterday after the court hearing because I had to do another motion to say payment installments of I could afford $100-No, don't do any payment.No payment installments. No, do not give them any payments.I already have the motion put in for five days, so I don't know what to do with that. I had to do another motion for them.For payments? You took an installment plan as a motion?Yeah.Okay, call the judge and tell me you can't do it.Okay.Tell them to pull that out because it's just saying, I looked at my budget, Your Honor. I'm sorry, I can't do it. I can settle with them for $2,000, and that's all I can do. I don't have room in the budget to do this. I was just scared, and I shouldn't have filed that. I'm sorry. Just tell the court clerk that and tell them to pull the motion off the docket. Okay? Okay. They'll do it. Then call up Capital One boy and tell him that you talk to your financial advisor and your financial advisor told you to file bankruptcy if he won't take the two grand. Because I just told you to I really don't want you to do that, by the way. But I did just tell you that, so you can tell him I said that.I mean, yeah, I honestly was my next option because- No, you're not bankrupt.You don't need to file bankruptcy. You need to bluff. Okay. Just walk away. Just go, All I got is two grand. If you want some money, bubba, here's some money. If you don't want some money, we got nothing else to talk about because I'm not paying you payments. If you come after me and start messing with my I'm going to file bankruptcy on you. You're going to get nothing. I'm a Chapter VII. Tell him this. Tell him my financial advisor said, I'm a Chapter VII looking for a place to happen.Okay.They'll know what it means.Yeah, because you are. He knows the same statistics I know, that as soon as he pushes you to the wall and garnishes your wages, you're going to file and he's going to get nothing. Now, I am not saying you're bankrupt. You're not, Amber, because you're going to scrape together 2,000. Now, here's what we're going to do. He's not going to take it today, but if you keep pestering them, they might take it. In the meantime, pile it up to 3,000 and up your offer. Keep upping it until you get it settled and settle it for a lump sum for pennies on the dollar, 50 cents on the dollar max. 3,500 is max. Until then, just beat the snot out of them. Just worry them. Call them every day. You all ready to take some money? I got money. You all want the money? When are you all going to take my money? I'm I'm calling you to take my money. I'm calling you to take my money. You don't have to call me. I'm calling you. Just have fun with this. This is The Ramsey Show. There aren't many places you can save hundreds of dollars a month and still give you great service, especially with health insurance.That's why Health Trust Financial is the only health insurance company Ramsey recommends. Health Trust Financial objectively compares the top health insurance providers to meet your needs and budget. Remember, the service is free and there's no commitment. Go to healthtrustfinancial. Com. Healthtrustfinancial. Com. George Campbell, Ramsey personality is my co-host today. Our question of the day comes from Ethan in Minnesota.Ethan says, My wife and I would be best described as Baby Step-ish up until the beginning of this year. Unfortunately, we always seemed to slip back into debt, and I can't figure out why. We just completed Financial Peace University at our church, but I need help with prioritizing. While we're still in baby step two, trying to pay off our consumer debt, we've been putting 12% into our 401k because of my company's 100% match. We also have $7,000 in a Robin hood account and $10,000 in savings. Together, our income is approximately $150,000 a year. My question, should I pull the Robin hood 5K and stop our 401(k) contributions temporarily? I honestly don't want to touch the $10,000 in savings. With five children, an aging furnace, and a second vehicle, Murphy is bound to stop by soon.Ethan, I don't think we can help you.He've decided to do Ethan's plan. Yeah. He said he's going to keep doing Ethan's plan.I mean, you know exactly what you're supposed to do and what we teach you to do. Millions of people have followed exactly what we told you to do. But for For some reason, you, the broke guy, don't think you need to do it. I don't think we can help you. You're not willing to be helped.They've already been through a financial piece.If I hire a personal trainer who has a six-pack or an eight-pack, is ripped like a Greek God, and I go down there in the gym with my keg, and he's got a six-pack, my belly sticking out in front of me, and I go, I don't think I agree with your nutrition plan. I don't think I'm going to do those exercises the way you think they ought to be done. You know what that is, Ethan? Dumber than crap. That's what that is. That's what this email is. It's dumber than crap. It's unbelievable.Well, he's wasting his own time, and he's wasting everyone else's time. Because clearly, you like your your plan, even though your plan is not working.Even though it sucks. That's essentially what you said. Even though it sucks, and the results suck, and you're financially upside down and sideways. You've been all around this. You know what we're going to say, and yet you Tell us what the guidelines are that you will go along with. Give me a break, dude. Go do something else. Quit wasting your time with our stuff. Because if you're half-but going to do it, you're going to get a half-but result or a worse result. Halt, even. No, I don't think we can help you. All right. That was easy. Dawn's with us in Austin, Texas. Hey, Dawn, how are you?Hi, James. Hi, George. Thanks for taking my call.Sure. How can we help?Well, we were wondering My husband and I, we think we're in baby step seven, we think we've maxed out the 529s from where our kids are going to school. I wanted to know if we want to continue to contribute on their behalf, where is the best place to place those investments now that we're going to be withdrawing for the 529 I am.You're not going to put any more in the 529, right?Well, they're going to end state college tuition. It's about 120, and we got 150 in there.Okay, so you're good.I'm trying to identify where we go.You could cover housing and books out of that, too, so you're fine. You want to put more money aside just for your kids, just for life, or in case you wanted to upgrade something at the school?Right. We're already in the rhythm of doing so, so we wanted continue.Okay, cool. I wouldn't. I would just put it in your name and gift it to them later.Okay. I appreciate it.Thank you so much. If you got an extra four or $500,000 laying around, you want to give a kid a couple of hundred for their first house or something. That'd be cool.All right. I appreciate it.Yeah. You can look into it. It's not going to hit. There's an estate gift limit, but it's millions and millions and millions.Twenty-seven million this year.It'll go against that, but you're not even going to go near touching that. Don't be worried about that. But what a cool way to bless the kids.Yeah, very neat.Parents of the Year right there. Very neat. That's the stuff you can do when you do the baby steps.Well, Baby Step 7, she's brilliant. I mean, well done Dawn. Way to go. I mean, you killed it. Quite the opposite of our emailer. But The thing is, I've run into people now that have been doing the Ramsey stuff so long, George, that they did this. They had a wedding fund, fully funded. They have their education fund, fully funded. Wedding fund is in their personal name, but they're able to then pay for their kid's wedding, right? Their first house, pay cash for it. Pay cash for the couple's first house. The guy said, I just make my kids sign a little one-page letter that promises that they will never go into debt for anything if I give them a free house so that I'm the last person with my last name to ever have any debt in this branch of the family tree. Wow. Completely break the cycle forever.That's legacy. That's the definition right there.It's That's fun. That's pretty cool. Dawn, she's approaching being able to do that. Yeah.Well, I wanted to ask you about that. I was going to do it off there. I'll ask on now because this is good teaching. For those of us that are following the baby steps, I got about one-year-old little girl now, and I'm thinking about these things. Hey, I'd love to help cover. I want to cover the wedding, help maybe the 401(D) plan for her first car. I pitch in half, she gets some skin in the game, pitches in the other half. Obviously, pay for college, make sure we cash flow that. Maybe cover her first house, maybe with her spouse one Are those wise things to do? It's like getting an inheritance early in a way.Yeah, it is very wise to do, but the wisdom is contingent upon the kid buying into the value system. If the kid's off the ranch, obviously, they're out there going crazy and whatever. We're doing heroine, I'm not buying them a house, right? I mean, obviously, your child's not going to be doing that. Dear God, I hope. But you know what I'm saying? Or if they marry somebody who's got a screw loose or something, then we're not going to do it. But if the two of you are sane and you buy into George and George's family values, and this is what down, it stopped.The truck is worth 28, but it has a $3,000 broken item, and you owe eight. Yeah. You're going to sell it for 25 because somebody's got to fix the turbo, and you're going to take the rest of the money and start settling your debts.Okay.Okay. Let's pretend you walk out of this with $15,000 or $20,000 cash after you sell the truck.Okay. I would say more $15 with the turbo and everything.I think you're probably right. I'm just saying, okay. He's making $1,500 a week, and he's working like a crazy man. He's not scared of work. He's not. He's a hard worker. You all have not been good at the business side of it, but he knows how to drive truck and he knows how to work, and he can go make money, and he's good at that. We got a $6,000 a month income now, and you got babies. Is there anything you can do from home to add income?I'm looking to see if I can find a job from home. I used to work in the pharmacy as a tech, and I was going back to school. I wanted to go back to school.You're not back to school right now. Right now, we're trying to eat. Okay. Yeah. Right now, we need any income you can create that's legal and moral and doesn't leave your family in jeopardy, okay? Yeah. If he's making six and you could pull in another two, now we got to work with. We got 15 from want to take the profits and reinvest them into equipment to make the company grow more, which would not cause you to grow 33%. You got to just, what are they doing with the profits? How are they booking that to cause this? It's not just as simple as, Oh, we made a bunch of money. It's not that easy. This is The Ramsey Show. Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. George Campbell, Ramsey personality, is my co-host today. He is a number one best-selling author and the co-host of Smart Money Happy Hour on the Ramsey Networks. Be sure and check out all of it. In the meantime, you can call us right here and we'll talk at 825-5225.Natalie is with us in Portland, Maine. Hi, Natalie. How are you? Good. How are you? Better than I deserve. What's up?This is crazy that you I picked up my call because I've been listening to you every day. I'm 26 and I'm about $150,000 in debt, and I'm just dreaming, trying to figure out how can I change my life? How can I get out of this debt? I I just feel like I'm stuck. I just really need your advice on how I get out of this financial mess. I think housing is a big part of my budget that I really can't afford right now.Okay. What are you making?I actually just got a new job, and I'm making 55 base, and I'm in medical sales, so I'm going to be able to get commission.Great. You think it'll be like 100K with your commission?I I hope so because that would make a significant impact on me that I think. Absolutely. I have one with my boyfriend as well.Okay.What is the 150 in debt?Eighty-eight of it is student loans. My It's a monthly payment fix, and it's not insane. That's about $105 a month. But the credit cards is really where I got into trouble, and I had to move unexpectedly. asking me before they list it.But what's the benefit to you? There's no benefit to you before they list it. You're not getting a deal. There's no bargain.I guess the benefit is that no one else would be able to make an offer on it.Oh, yeah. Okay. If you had a transaction you were comfortable with and you can go through and get your mortgage and everything, you can go to a title company, get a contract drawn up, and do this. I think this transaction is so far from happening that you probably do need a pro in your corner to help you navigate the negotiation and then help you navigate the closing, help you navigate the appraisal, help you navigate the getting the mortgage and all the different things, all of things you don't know how to do. But if you had all those things already lined up, you could. You don't have to have a real estate agent, but you can, in this case, I think you benefit from one. If they list it, typically what happens is the listing agent, in this case, the property manager, they're going to put a 6% commission on it or something about like that. Then the agent that represents the buyer is going to split that with the selling agent, typically. That's a normal transaction. If you get a real estate agent to represent you and they work with the selling agent before it actually goes on the market, but a commission is still paid, it didn't cost you anything.It cost them something. Let me tell you, if you just buy it right now, I think this agent is going to get both of the commissions. They're I'm probably going to charge that seller a full commission. So, yes, the answer is I'd go get a real estate agent. Yes. In your situation, I would. Yes. I mean, it's borderline, but I think there's a lot of A, there's another real estate agent already involved. Okay. B, you don't like the comps, so you got some negotiating to do. C, you got to have somebody walk you through the closing process and the mortgage-getting process and the appraisal process. So all of those things tell me, Yeah, I put a real estate agent in your corner.It's just worth it for the stress factor at this point.Well, and the expertise to guide you through a journey that you've never been on.I might negotiate and save you 30 grand to where it was worth it.Ramseysolutions. Com/agent will help you find a Ramsey-trusted agent in your area to help you do that. This is the Ramsey Show. Our scripture of the day, Ecclesiastes It is better that you should not vow than that you should vow and not pay. John Adams said, There are two ways to conquer and enslave a country. One is by the sword, the other is by debt. Ask the Chinese.It's good foreshadowing.Just got a little bit of a conspiracy theory chill.About 300 years later, and here we are, trillions in debt to other countries, Dave.There you go. Scary. Bradley's in Chicago. Hey, Bradley, welcome to The Ramsey Show.Hello. I want to thank you both so much for having me. I know you hear this all the time, but you've definitely made a positive change in my life.Well, thank you, sir. How can we help today?Yeah, Absolutely. I made the decision to loan out money to family and friends of mine in the total sum of just over $8,000. As time goes on, given the lifestyle that they lead, it's starting to leave a sour taste in my mouth a little bit. I guess my question is, how do I hold them accountable to make me whole and pay me back without straining the friendships? My marriage, because I just got married in November, and my wife, this was before we got married, but she had vouched for her cousin as somebody for me to loan out money to. That's three of the eight grand, and it's been over a year, and I've only seen 500 of it since.So what is your income?Yeah, just over 100. I sell software, so it's a little bit variable, but it's been over 100 for the past three years.Why did you become the lender? Was it word of mouth, Hey, this guy will own you some money. Go to him.So my wife's cousin originally owed money to who is now my mother-in-law, and the cousin didn't like how difficult or tough to work. It sounded like the mother-in-law was trying to hold her accountable and put her feet to the fire and was complaining to my wife about it. My wife turned to me and said, Hey, I know you've got some money. Can we help her out? Then my other friend just knew that I was in a good position. He didn't ask me for the money. I just knew that he was in trouble I decided to give him five of the eight. But at the same time, he has a Corvette. He has two cars, both in that on those and live the life in Alibaba.You knew that when you gave him the money, right?Yeah, I didn't know that when I gave them the money.You're probably not going to like my answer.Oh, no. Okay.I think you've learned a very harsh Lesson. Never loan people money. If you want to help people, give them some money, but don't loan them any money because it changes your relationship with your friend and your wife's to master slave. You're the master, they're the slave. Even if you're a nice master, you're still a master. The borrower is slave to the lender 100% of the time. That's what you're feeling here. Is that these people are unappreciative, they're out of control. But guess what? They were both of those things before you gave them money, and you just got to now experience it personally. My opinion is that you wrote an $8,000 check for tuition to the School of Life, and the School of Life just gave you a passing grade on never loan people money. You have passed that class now. You paid the stupid tax. If I woke up in your shoes with your situation, I would tell your wife, first thing I do, sit down with her and say, Okay, I've made the decision that I made a mistake when I loaned your cousin money and when I loaned my friend money. If we were going to help them, we should have given them money.Go ahead and understand that from this point forward, I will never loan money to a family member again. As long as you see me breathing, that will not occur. You and your wife get on the same page about that. Then I'd call up your friend and say, If you can pay me, that would be nice. But if you don't pay me, I want you to know I'm just going to forgive the debt because your friendship is more important. Tell the cousin the exact same thing, and I'll give you about a 98% chance you get no money. But by the way, even if you don't do this, I'm going to give you a 98% chance you get no money. You loaned broke people money Don't be shocked, they don't pay you. I would forgive the debt and walk away. This is costing you more angst and- A soul tax isn't worth it. And soul tax. It's taxing your brain. You are thinking about it. They aren't.You're worried about straining the relationship. It's already strained. I don't know that it's ever going to go back to the way it was, even if- If they came in and wrote you a check today and both of them paid you, you still don't have any respect for either one of these people.I don't know if I'd say that.I don't. I don't have any respect for either one of them.It's not going to go back to the way it was before you lent them money. As soon as you offer that money, the relationship changed.I mean, it sounds like your friend is a person who just spends too much and is out of control as a typical American, and it sounds like your wife's cousin is a complete parasite.Bradley's a sweet guy, and people are going to go, Well, Brad will give me some money. I'll be fine. Yeah.And, buddy, I would end the bank of Bradley. Closing up shop on the bank of Bradley. We're done with that puppy.That's a boundary that people please, which I'm one of them, recovering people pleaser. They have to put boundary and go as nice of a guy as I am, I'm not going to do it.I don't do that. The only thing I can do is give you money, and I don't have anybody right now to give you.That's it. I love the quote, Choose guilt over resentment. Right now, Bradley's dealing with the other side, resentment. Choose guilt that you couldn't and you didn't, versus the resentment of I did and I regret it.If I woke up in your shoes, sir, having done what you've done, I would just walk away. I think it's costing you more than $8,000 in your in your soul and in your relationship. You're even a tiny bit resentful towards your wife for asking you to do this for her cousin who's a parasite. I'm going to put an end to every bit of that. I'm just going to say, I'm done. I'm not going to think about it anymore. No more money. I have zero expectation. The secret to happiness is low expectations. It's like my golf game.It's working out so far.I'm not going to get mad about something Something that I have no expectation is actually going to occur. That's pretty easy. Because that's what happens. If it only costs you $8,000 to learn this lesson… It was cheap. That was cheap. That was a deal. That was cheap stupid tax. Very cheap stupid tax.Dave's done it with way more zeros on the end.Yeah, I definitely have done it with a lot of a lot of dumber things and a lot of bigger things. It's the never again principle. Once you do something dumb, you say, Okay, that's in the never again We never again do that. That way I may lose money another way, but I won't lose money that way. Never again.Well, the hardest part is not forgiving the other person. It's forgiving yourself because you just think, Gosh, how did I do something so dumb? I can't let this go, and it causes anger inside of you. That's a difficult thing.It is. Because if you look at it objectively, neither one of these characters were worthy of a loan. They weren't. I mean, who would loan these people money if you weren't- I'm guessing a bank wouldn't lend them money.No, they wouldn't. Which is why they went to him.Exactly. The Bank of Bradley.It's got a nice ring to it, honestly.It's closed, though. Closed for business. It's no longer open for business.We liquidated the That's it.Got a little sign on the front, like the Persian rug place, going out of business.Eighty % off.Going out of business.And yet somehow still too expensive.Fourteen years later, we're still going out of business.And you still got ripped off on that rug. That's it. Not fool me once.Bradley, I'm sorry. I hate it for you, man, but that's what I would do. That puts us hour of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, folks. Dave Ramsey here. You know budgeting doesn't have to be boring. You just need a budgeting app that's made with you in mind, and that's EveryDollar. The EveryDollar app has helped millions of people work the baby steps and take the stress out of planning and managing their money. Start budgeting with EveryDollar for free right now. Just go to ramseysolutions. Com/everydollar and download the app today. That's ramseysolutions. Com/everydollar.

edition on sale.

All these best sellers and many other things on sale for $12. Be sure and check them out the summer Black Friday sale, ramseysolutions. Com/sale ends midnight. Tonight. Do not delay. Thanks for being with us. Amber's on the line. Amber's in Detroit. Hi, Amber. How are you?

Hi. How are you doing, Dave?

Better than I deserve. What's up?

Okay. Basically, I went to court yesterday as I was from the support by Capital One on the behalf of the lawyers based on Capital One, so they directly sued me. The lawyer approached me in court to settle out, but the settlement was for... Well, the debt overall is $7,000, which is being a court fee. They pretty much told me I could settle out for $6,000 With interest that would incur if I was on a monthly payment. I was trying to do a lump sum, but I can't afford that. I'm in economic hardship, and I explained that to the lawyer, and they're playing hard ball, and I'm trying to find out how can I go about settling for a lower amount.

Well, wow. In most states, Michigan, I think, is one them. They can harness you your wages, but it'll take them a while if you don't do anything. What happens is the lawsuit, they've offered you a settlement, and in the meantime, they're going to take a judgment. The court is going to rule that you owe the money and didn't pay the money judgment. When the judgment becomes final, at least 30 days will go by, if not more, before they can execute on the judgment. Executing on the judgment means that they would scarf money out of a bank account or garner you a wage if your state allows those things. Texas, for instance, does not allow that. But I'm pretty sure Michigan does. I'm not an attorney in Michigan, so I'm not an attorney anywhere. But that's the type of thing you're facing. So there's nothing on fire. Nothing's going to happen bad to you in the next 10 minutes. It's going to be a month or two or six or a year. Okay? Does that make sense? Okay. See, one of the things I found is if I can get the panic off, then I can get my edge back in this negotiation.

You went down to court, which is so unusual. I'm really shocked that this moron only offered you a six grand settlement on a $7,000 balance. you. I'm very nervous, actually.I bet. But it's funny, though, isn't it? I mean, it's like the first time I ever got a speeding ticket, and it's first of many, but I went to traffic court. And traffic court is like nothing. I mean, I was more scared of my sixth grade teacher than I was traffic court. Traffic court is a joke. You go in there and they go, Oh, you showed up? Okay, we'll waive the ticket. Your first one. Most places, they do that. You bother to show up. Did you have that experience? It's like you were all scared and you thought you were going down there. There's going to be like a trial and they were going to have a jury and Matlock was going to come out or Perry Mason or somebody. It's just like nothing. You're down there in the middle of a grinder and they're just making hamburger meat.Taking a number at the deli. All right, next.Did you notice that?Yes.There's really no drama, is there?No.Not that I imagine. Yeah. So not like your brain had told you for the three days before you It down there. The same thing is true now of settling this, okay? They put this out there as if it's their only thing they're going to do. Their chances of actually collecting anything from you, statistically, is zero. 98% of the people in your situation end up filing bankruptcy or just disappearing, and they can't find them. They collect almost none of these judgments, and they know that. They were so shocked that an actual human being showed up. They didn't know what to do. It never happens. All that to say is this. You owe $7,000. You could probably settle that for two grand I want you to scrape together two grand really, really fast. What do you make?I have two grand. Actually, I'm an independent contractor. I do $5,000.You do have $2,000?I tried to set… I ended up I was calling them back yesterday after the court hearing because I had to do another motion to say payment installments of I could afford $100-No, don't do any payment.No payment installments. No, do not give them any payments.I already have the motion put in for five days, so I don't know what to do with that. I had to do another motion for them.For payments? You took an installment plan as a motion?Yeah.Okay, call the judge and tell me you can't do it.Okay.Tell them to pull that out because it's just saying, I looked at my budget, Your Honor. I'm sorry, I can't do it. I can settle with them for $2,000, and that's all I can do. I don't have room in the budget to do this. I was just scared, and I shouldn't have filed that. I'm sorry. Just tell the court clerk that and tell them to pull the motion off the docket. Okay? Okay. They'll do it. Then call up Capital One boy and tell him that you talk to your financial advisor and your financial advisor told you to file bankruptcy if he won't take the two grand. Because I just told you to I really don't want you to do that, by the way. But I did just tell you that, so you can tell him I said that.I mean, yeah, I honestly was my next option because- No, you're not bankrupt.You don't need to file bankruptcy. You need to bluff. Okay. Just walk away. Just go, All I got is two grand. If you want some money, bubba, here's some money. If you don't want some money, we got nothing else to talk about because I'm not paying you payments. If you come after me and start messing with my I'm going to file bankruptcy on you. You're going to get nothing. I'm a Chapter VII. Tell him this. Tell him my financial advisor said, I'm a Chapter VII looking for a place to happen.Okay.They'll know what it means.Yeah, because you are. He knows the same statistics I know, that as soon as he pushes you to the wall and garnishes your wages, you're going to file and he's going to get nothing. Now, I am not saying you're bankrupt. You're not, Amber, because you're going to scrape together 2,000. Now, here's what we're going to do. He's not going to take it today, but if you keep pestering them, they might take it. In the meantime, pile it up to 3,000 and up your offer. Keep upping it until you get it settled and settle it for a lump sum for pennies on the dollar, 50 cents on the dollar max. 3,500 is max. Until then, just beat the snot out of them. Just worry them. Call them every day. You all ready to take some money? I got money. You all want the money? When are you all going to take my money? I'm I'm calling you to take my money. I'm calling you to take my money. You don't have to call me. I'm calling you. Just have fun with this. This is The Ramsey Show. There aren't many places you can save hundreds of dollars a month and still give you great service, especially with health insurance.That's why Health Trust Financial is the only health insurance company Ramsey recommends. Health Trust Financial objectively compares the top health insurance providers to meet your needs and budget. Remember, the service is free and there's no commitment. Go to healthtrustfinancial. Com. Healthtrustfinancial. Com. George Campbell, Ramsey personality is my co-host today. Our question of the day comes from Ethan in Minnesota.Ethan says, My wife and I would be best described as Baby Step-ish up until the beginning of this year. Unfortunately, we always seemed to slip back into debt, and I can't figure out why. We just completed Financial Peace University at our church, but I need help with prioritizing. While we're still in baby step two, trying to pay off our consumer debt, we've been putting 12% into our 401k because of my company's 100% match. We also have $7,000 in a Robin hood account and $10,000 in savings. Together, our income is approximately $150,000 a year. My question, should I pull the Robin hood 5K and stop our 401(k) contributions temporarily? I honestly don't want to touch the $10,000 in savings. With five children, an aging furnace, and a second vehicle, Murphy is bound to stop by soon.Ethan, I don't think we can help you.He've decided to do Ethan's plan. Yeah. He said he's going to keep doing Ethan's plan.I mean, you know exactly what you're supposed to do and what we teach you to do. Millions of people have followed exactly what we told you to do. But for For some reason, you, the broke guy, don't think you need to do it. I don't think we can help you. You're not willing to be helped.They've already been through a financial piece.If I hire a personal trainer who has a six-pack or an eight-pack, is ripped like a Greek God, and I go down there in the gym with my keg, and he's got a six-pack, my belly sticking out in front of me, and I go, I don't think I agree with your nutrition plan. I don't think I'm going to do those exercises the way you think they ought to be done. You know what that is, Ethan? Dumber than crap. That's what that is. That's what this email is. It's dumber than crap. It's unbelievable.Well, he's wasting his own time, and he's wasting everyone else's time. Because clearly, you like your your plan, even though your plan is not working.Even though it sucks. That's essentially what you said. Even though it sucks, and the results suck, and you're financially upside down and sideways. You've been all around this. You know what we're going to say, and yet you Tell us what the guidelines are that you will go along with. Give me a break, dude. Go do something else. Quit wasting your time with our stuff. Because if you're half-but going to do it, you're going to get a half-but result or a worse result. Halt, even. No, I don't think we can help you. All right. That was easy. Dawn's with us in Austin, Texas. Hey, Dawn, how are you?Hi, James. Hi, George. Thanks for taking my call.Sure. How can we help?Well, we were wondering My husband and I, we think we're in baby step seven, we think we've maxed out the 529s from where our kids are going to school. I wanted to know if we want to continue to contribute on their behalf, where is the best place to place those investments now that we're going to be withdrawing for the 529 I am.You're not going to put any more in the 529, right?Well, they're going to end state college tuition. It's about 120, and we got 150 in there.Okay, so you're good.I'm trying to identify where we go.You could cover housing and books out of that, too, so you're fine. You want to put more money aside just for your kids, just for life, or in case you wanted to upgrade something at the school?Right. We're already in the rhythm of doing so, so we wanted continue.Okay, cool. I wouldn't. I would just put it in your name and gift it to them later.Okay. I appreciate it.Thank you so much. If you got an extra four or $500,000 laying around, you want to give a kid a couple of hundred for their first house or something. That'd be cool.All right. I appreciate it.Yeah. You can look into it. It's not going to hit. There's an estate gift limit, but it's millions and millions and millions.Twenty-seven million this year.It'll go against that, but you're not even going to go near touching that. Don't be worried about that. But what a cool way to bless the kids.Yeah, very neat.Parents of the Year right there. Very neat. That's the stuff you can do when you do the baby steps.Well, Baby Step 7, she's brilliant. I mean, well done Dawn. Way to go. I mean, you killed it. Quite the opposite of our emailer. But The thing is, I've run into people now that have been doing the Ramsey stuff so long, George, that they did this. They had a wedding fund, fully funded. They have their education fund, fully funded. Wedding fund is in their personal name, but they're able to then pay for their kid's wedding, right? Their first house, pay cash for it. Pay cash for the couple's first house. The guy said, I just make my kids sign a little one-page letter that promises that they will never go into debt for anything if I give them a free house so that I'm the last person with my last name to ever have any debt in this branch of the family tree. Wow. Completely break the cycle forever.That's legacy. That's the definition right there.It's That's fun. That's pretty cool. Dawn, she's approaching being able to do that. Yeah.Well, I wanted to ask you about that. I was going to do it off there. I'll ask on now because this is good teaching. For those of us that are following the baby steps, I got about one-year-old little girl now, and I'm thinking about these things. Hey, I'd love to help cover. I want to cover the wedding, help maybe the 401(D) plan for her first car. I pitch in half, she gets some skin in the game, pitches in the other half. Obviously, pay for college, make sure we cash flow that. Maybe cover her first house, maybe with her spouse one Are those wise things to do? It's like getting an inheritance early in a way.Yeah, it is very wise to do, but the wisdom is contingent upon the kid buying into the value system. If the kid's off the ranch, obviously, they're out there going crazy and whatever. We're doing heroine, I'm not buying them a house, right? I mean, obviously, your child's not going to be doing that. Dear God, I hope. But you know what I'm saying? Or if they marry somebody who's got a screw loose or something, then we're not going to do it. But if the two of you are sane and you buy into George and George's family values, and this is what down, it stopped.The truck is worth 28, but it has a $3,000 broken item, and you owe eight. Yeah. You're going to sell it for 25 because somebody's got to fix the turbo, and you're going to take the rest of the money and start settling your debts.Okay.Okay. Let's pretend you walk out of this with $15,000 or $20,000 cash after you sell the truck.Okay. I would say more $15 with the turbo and everything.I think you're probably right. I'm just saying, okay. He's making $1,500 a week, and he's working like a crazy man. He's not scared of work. He's not. He's a hard worker. You all have not been good at the business side of it, but he knows how to drive truck and he knows how to work, and he can go make money, and he's good at that. We got a $6,000 a month income now, and you got babies. Is there anything you can do from home to add income?I'm looking to see if I can find a job from home. I used to work in the pharmacy as a tech, and I was going back to school. I wanted to go back to school.You're not back to school right now. Right now, we're trying to eat. Okay. Yeah. Right now, we need any income you can create that's legal and moral and doesn't leave your family in jeopardy, okay? Yeah. If he's making six and you could pull in another two, now we got to work with. We got 15 from want to take the profits and reinvest them into equipment to make the company grow more, which would not cause you to grow 33%. You got to just, what are they doing with the profits? How are they booking that to cause this? It's not just as simple as, Oh, we made a bunch of money. It's not that easy. This is The Ramsey Show. Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. George Campbell, Ramsey personality, is my co-host today. He is a number one best-selling author and the co-host of Smart Money Happy Hour on the Ramsey Networks. Be sure and check out all of it. In the meantime, you can call us right here and we'll talk at 825-5225.Natalie is with us in Portland, Maine. Hi, Natalie. How are you? Good. How are you? Better than I deserve. What's up?This is crazy that you I picked up my call because I've been listening to you every day. I'm 26 and I'm about $150,000 in debt, and I'm just dreaming, trying to figure out how can I change my life? How can I get out of this debt? I I just feel like I'm stuck. I just really need your advice on how I get out of this financial mess. I think housing is a big part of my budget that I really can't afford right now.Okay. What are you making?I actually just got a new job, and I'm making 55 base, and I'm in medical sales, so I'm going to be able to get commission.Great. You think it'll be like 100K with your commission?I I hope so because that would make a significant impact on me that I think. Absolutely. I have one with my boyfriend as well.Okay.What is the 150 in debt?Eighty-eight of it is student loans. My It's a monthly payment fix, and it's not insane. That's about $105 a month. But the credit cards is really where I got into trouble, and I had to move unexpectedly. asking me before they list it.But what's the benefit to you? There's no benefit to you before they list it. You're not getting a deal. There's no bargain.I guess the benefit is that no one else would be able to make an offer on it.Oh, yeah. Okay. If you had a transaction you were comfortable with and you can go through and get your mortgage and everything, you can go to a title company, get a contract drawn up, and do this. I think this transaction is so far from happening that you probably do need a pro in your corner to help you navigate the negotiation and then help you navigate the closing, help you navigate the appraisal, help you navigate the getting the mortgage and all the different things, all of things you don't know how to do. But if you had all those things already lined up, you could. You don't have to have a real estate agent, but you can, in this case, I think you benefit from one. If they list it, typically what happens is the listing agent, in this case, the property manager, they're going to put a 6% commission on it or something about like that. Then the agent that represents the buyer is going to split that with the selling agent, typically. That's a normal transaction. If you get a real estate agent to represent you and they work with the selling agent before it actually goes on the market, but a commission is still paid, it didn't cost you anything.It cost them something. Let me tell you, if you just buy it right now, I think this agent is going to get both of the commissions. They're I'm probably going to charge that seller a full commission. So, yes, the answer is I'd go get a real estate agent. Yes. In your situation, I would. Yes. I mean, it's borderline, but I think there's a lot of A, there's another real estate agent already involved. Okay. B, you don't like the comps, so you got some negotiating to do. C, you got to have somebody walk you through the closing process and the mortgage-getting process and the appraisal process. So all of those things tell me, Yeah, I put a real estate agent in your corner.It's just worth it for the stress factor at this point.Well, and the expertise to guide you through a journey that you've never been on.I might negotiate and save you 30 grand to where it was worth it.Ramseysolutions. Com/agent will help you find a Ramsey-trusted agent in your area to help you do that. This is the Ramsey Show. Our scripture of the day, Ecclesiastes It is better that you should not vow than that you should vow and not pay. John Adams said, There are two ways to conquer and enslave a country. One is by the sword, the other is by debt. Ask the Chinese.It's good foreshadowing.Just got a little bit of a conspiracy theory chill.About 300 years later, and here we are, trillions in debt to other countries, Dave.There you go. Scary. Bradley's in Chicago. Hey, Bradley, welcome to The Ramsey Show.Hello. I want to thank you both so much for having me. I know you hear this all the time, but you've definitely made a positive change in my life.Well, thank you, sir. How can we help today?Yeah, Absolutely. I made the decision to loan out money to family and friends of mine in the total sum of just over $8,000. As time goes on, given the lifestyle that they lead, it's starting to leave a sour taste in my mouth a little bit. I guess my question is, how do I hold them accountable to make me whole and pay me back without straining the friendships? My marriage, because I just got married in November, and my wife, this was before we got married, but she had vouched for her cousin as somebody for me to loan out money to. That's three of the eight grand, and it's been over a year, and I've only seen 500 of it since.So what is your income?Yeah, just over 100. I sell software, so it's a little bit variable, but it's been over 100 for the past three years.Why did you become the lender? Was it word of mouth, Hey, this guy will own you some money. Go to him.So my wife's cousin originally owed money to who is now my mother-in-law, and the cousin didn't like how difficult or tough to work. It sounded like the mother-in-law was trying to hold her accountable and put her feet to the fire and was complaining to my wife about it. My wife turned to me and said, Hey, I know you've got some money. Can we help her out? Then my other friend just knew that I was in a good position. He didn't ask me for the money. I just knew that he was in trouble I decided to give him five of the eight. But at the same time, he has a Corvette. He has two cars, both in that on those and live the life in Alibaba.You knew that when you gave him the money, right?Yeah, I didn't know that when I gave them the money.You're probably not going to like my answer.Oh, no. Okay.I think you've learned a very harsh Lesson. Never loan people money. If you want to help people, give them some money, but don't loan them any money because it changes your relationship with your friend and your wife's to master slave. You're the master, they're the slave. Even if you're a nice master, you're still a master. The borrower is slave to the lender 100% of the time. That's what you're feeling here. Is that these people are unappreciative, they're out of control. But guess what? They were both of those things before you gave them money, and you just got to now experience it personally. My opinion is that you wrote an $8,000 check for tuition to the School of Life, and the School of Life just gave you a passing grade on never loan people money. You have passed that class now. You paid the stupid tax. If I woke up in your shoes with your situation, I would tell your wife, first thing I do, sit down with her and say, Okay, I've made the decision that I made a mistake when I loaned your cousin money and when I loaned my friend money. If we were going to help them, we should have given them money.Go ahead and understand that from this point forward, I will never loan money to a family member again. As long as you see me breathing, that will not occur. You and your wife get on the same page about that. Then I'd call up your friend and say, If you can pay me, that would be nice. But if you don't pay me, I want you to know I'm just going to forgive the debt because your friendship is more important. Tell the cousin the exact same thing, and I'll give you about a 98% chance you get no money. But by the way, even if you don't do this, I'm going to give you a 98% chance you get no money. You loaned broke people money Don't be shocked, they don't pay you. I would forgive the debt and walk away. This is costing you more angst and- A soul tax isn't worth it. And soul tax. It's taxing your brain. You are thinking about it. They aren't.You're worried about straining the relationship. It's already strained. I don't know that it's ever going to go back to the way it was, even if- If they came in and wrote you a check today and both of them paid you, you still don't have any respect for either one of these people.I don't know if I'd say that.I don't. I don't have any respect for either one of them.It's not going to go back to the way it was before you lent them money. As soon as you offer that money, the relationship changed.I mean, it sounds like your friend is a person who just spends too much and is out of control as a typical American, and it sounds like your wife's cousin is a complete parasite.Bradley's a sweet guy, and people are going to go, Well, Brad will give me some money. I'll be fine. Yeah.And, buddy, I would end the bank of Bradley. Closing up shop on the bank of Bradley. We're done with that puppy.That's a boundary that people please, which I'm one of them, recovering people pleaser. They have to put boundary and go as nice of a guy as I am, I'm not going to do it.I don't do that. The only thing I can do is give you money, and I don't have anybody right now to give you.That's it. I love the quote, Choose guilt over resentment. Right now, Bradley's dealing with the other side, resentment. Choose guilt that you couldn't and you didn't, versus the resentment of I did and I regret it.If I woke up in your shoes, sir, having done what you've done, I would just walk away. I think it's costing you more than $8,000 in your in your soul and in your relationship. You're even a tiny bit resentful towards your wife for asking you to do this for her cousin who's a parasite. I'm going to put an end to every bit of that. I'm just going to say, I'm done. I'm not going to think about it anymore. No more money. I have zero expectation. The secret to happiness is low expectations. It's like my golf game.It's working out so far.I'm not going to get mad about something Something that I have no expectation is actually going to occur. That's pretty easy. Because that's what happens. If it only costs you $8,000 to learn this lesson… It was cheap. That was cheap. That was a deal. That was cheap stupid tax. Very cheap stupid tax.Dave's done it with way more zeros on the end.Yeah, I definitely have done it with a lot of a lot of dumber things and a lot of bigger things. It's the never again principle. Once you do something dumb, you say, Okay, that's in the never again We never again do that. That way I may lose money another way, but I won't lose money that way. Never again.Well, the hardest part is not forgiving the other person. It's forgiving yourself because you just think, Gosh, how did I do something so dumb? I can't let this go, and it causes anger inside of you. That's a difficult thing.It is. Because if you look at it objectively, neither one of these characters were worthy of a loan. They weren't. I mean, who would loan these people money if you weren't- I'm guessing a bank wouldn't lend them money.No, they wouldn't. Which is why they went to him.Exactly. The Bank of Bradley.It's got a nice ring to it, honestly.It's closed, though. Closed for business. It's no longer open for business.We liquidated the That's it.Got a little sign on the front, like the Persian rug place, going out of business.Eighty % off.Going out of business.And yet somehow still too expensive.Fourteen years later, we're still going out of business.And you still got ripped off on that rug. That's it. Not fool me once.Bradley, I'm sorry. I hate it for you, man, but that's what I would do. That puts us hour of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, folks. Dave Ramsey here. You know budgeting doesn't have to be boring. You just need a budgeting app that's made with you in mind, and that's EveryDollar. The EveryDollar app has helped millions of people work the baby steps and take the stress out of planning and managing their money. Start budgeting with EveryDollar for free right now. Just go to ramseysolutions. Com/everydollar and download the app today. That's ramseysolutions. Com/everydollar.

you. I'm very nervous, actually.

I bet. But it's funny, though, isn't it? I mean, it's like the first time I ever got a speeding ticket, and it's first of many, but I went to traffic court. And traffic court is like nothing. I mean, I was more scared of my sixth grade teacher than I was traffic court. Traffic court is a joke. You go in there and they go, Oh, you showed up? Okay, we'll waive the ticket. Your first one. Most places, they do that. You bother to show up. Did you have that experience? It's like you were all scared and you thought you were going down there. There's going to be like a trial and they were going to have a jury and Matlock was going to come out or Perry Mason or somebody. It's just like nothing. You're down there in the middle of a grinder and they're just making hamburger meat.

Taking a number at the deli. All right, next.

Did you notice that?

Yes.

There's really no drama, is there?

No.

Not that I imagine. Yeah. So not like your brain had told you for the three days before you It down there. The same thing is true now of settling this, okay? They put this out there as if it's their only thing they're going to do. Their chances of actually collecting anything from you, statistically, is zero. 98% of the people in your situation end up filing bankruptcy or just disappearing, and they can't find them. They collect almost none of these judgments, and they know that. They were so shocked that an actual human being showed up. They didn't know what to do. It never happens. All that to say is this. You owe $7,000. You could probably settle that for two grand I want you to scrape together two grand really, really fast. What do you make?

I have two grand. Actually, I'm an independent contractor. I do $5,000.

You do have $2,000?

I tried to set… I ended up I was calling them back yesterday after the court hearing because I had to do another motion to say payment installments of I could afford $100-No, don't do any payment.

No payment installments. No, do not give them any payments.

I already have the motion put in for five days, so I don't know what to do with that. I had to do another motion for them.

For payments? You took an installment plan as a motion?

Yeah.

Okay, call the judge and tell me you can't do it.

Okay.

Tell them to pull that out because it's just saying, I looked at my budget, Your Honor. I'm sorry, I can't do it. I can settle with them for $2,000, and that's all I can do. I don't have room in the budget to do this. I was just scared, and I shouldn't have filed that. I'm sorry. Just tell the court clerk that and tell them to pull the motion off the docket. Okay? Okay. They'll do it. Then call up Capital One boy and tell him that you talk to your financial advisor and your financial advisor told you to file bankruptcy if he won't take the two grand. Because I just told you to I really don't want you to do that, by the way. But I did just tell you that, so you can tell him I said that.

I mean, yeah, I honestly was my next option because- No, you're not bankrupt.

You don't need to file bankruptcy. You need to bluff. Okay. Just walk away. Just go, All I got is two grand. If you want some money, bubba, here's some money. If you don't want some money, we got nothing else to talk about because I'm not paying you payments. If you come after me and start messing with my I'm going to file bankruptcy on you. You're going to get nothing. I'm a Chapter VII. Tell him this. Tell him my financial advisor said, I'm a Chapter VII looking for a place to happen.

Okay.

They'll know what it means.

Yeah, because you are. He knows the same statistics I know, that as soon as he pushes you to the wall and garnishes your wages, you're going to file and he's going to get nothing. Now, I am not saying you're bankrupt. You're not, Amber, because you're going to scrape together 2,000. Now, here's what we're going to do. He's not going to take it today, but if you keep pestering them, they might take it. In the meantime, pile it up to 3,000 and up your offer. Keep upping it until you get it settled and settle it for a lump sum for pennies on the dollar, 50 cents on the dollar max. 3,500 is max. Until then, just beat the snot out of them. Just worry them. Call them every day. You all ready to take some money? I got money. You all want the money? When are you all going to take my money? I'm I'm calling you to take my money. I'm calling you to take my money. You don't have to call me. I'm calling you. Just have fun with this. This is The Ramsey Show. There aren't many places you can save hundreds of dollars a month and still give you great service, especially with health insurance.

That's why Health Trust Financial is the only health insurance company Ramsey recommends. Health Trust Financial objectively compares the top health insurance providers to meet your needs and budget. Remember, the service is free and there's no commitment. Go to healthtrustfinancial. Com. Healthtrustfinancial. Com. George Campbell, Ramsey personality is my co-host today. Our question of the day comes from Ethan in Minnesota.

Ethan says, My wife and I would be best described as Baby Step-ish up until the beginning of this year. Unfortunately, we always seemed to slip back into debt, and I can't figure out why. We just completed Financial Peace University at our church, but I need help with prioritizing. While we're still in baby step two, trying to pay off our consumer debt, we've been putting 12% into our 401k because of my company's 100% match. We also have $7,000 in a Robin hood account and $10,000 in savings. Together, our income is approximately $150,000 a year. My question, should I pull the Robin hood 5K and stop our 401(k) contributions temporarily? I honestly don't want to touch the $10,000 in savings. With five children, an aging furnace, and a second vehicle, Murphy is bound to stop by soon.

Ethan, I don't think we can help you.

He've decided to do Ethan's plan. Yeah. He said he's going to keep doing Ethan's plan.

I mean, you know exactly what you're supposed to do and what we teach you to do. Millions of people have followed exactly what we told you to do. But for For some reason, you, the broke guy, don't think you need to do it. I don't think we can help you. You're not willing to be helped.

They've already been through a financial piece.

If I hire a personal trainer who has a six-pack or an eight-pack, is ripped like a Greek God, and I go down there in the gym with my keg, and he's got a six-pack, my belly sticking out in front of me, and I go, I don't think I agree with your nutrition plan. I don't think I'm going to do those exercises the way you think they ought to be done. You know what that is, Ethan? Dumber than crap. That's what that is. That's what this email is. It's dumber than crap. It's unbelievable.

Well, he's wasting his own time, and he's wasting everyone else's time. Because clearly, you like your your plan, even though your plan is not working.

Even though it sucks. That's essentially what you said. Even though it sucks, and the results suck, and you're financially upside down and sideways. You've been all around this. You know what we're going to say, and yet you Tell us what the guidelines are that you will go along with. Give me a break, dude. Go do something else. Quit wasting your time with our stuff. Because if you're half-but going to do it, you're going to get a half-but result or a worse result. Halt, even. No, I don't think we can help you. All right. That was easy. Dawn's with us in Austin, Texas. Hey, Dawn, how are you?

Hi, James. Hi, George. Thanks for taking my call.

Sure. How can we help?

Well, we were wondering My husband and I, we think we're in baby step seven, we think we've maxed out the 529s from where our kids are going to school. I wanted to know if we want to continue to contribute on their behalf, where is the best place to place those investments now that we're going to be withdrawing for the 529 I am.

You're not going to put any more in the 529, right?

Well, they're going to end state college tuition. It's about 120, and we got 150 in there.

Okay, so you're good.

I'm trying to identify where we go.

You could cover housing and books out of that, too, so you're fine. You want to put more money aside just for your kids, just for life, or in case you wanted to upgrade something at the school?

Right. We're already in the rhythm of doing so, so we wanted continue.

Okay, cool. I wouldn't. I would just put it in your name and gift it to them later.

Okay. I appreciate it.

Thank you so much. If you got an extra four or $500,000 laying around, you want to give a kid a couple of hundred for their first house or something. That'd be cool.

All right. I appreciate it.

Yeah. You can look into it. It's not going to hit. There's an estate gift limit, but it's millions and millions and millions.

Twenty-seven million this year.

It'll go against that, but you're not even going to go near touching that. Don't be worried about that. But what a cool way to bless the kids.

Yeah, very neat.

Parents of the Year right there. Very neat. That's the stuff you can do when you do the baby steps.

Well, Baby Step 7, she's brilliant. I mean, well done Dawn. Way to go. I mean, you killed it. Quite the opposite of our emailer. But The thing is, I've run into people now that have been doing the Ramsey stuff so long, George, that they did this. They had a wedding fund, fully funded. They have their education fund, fully funded. Wedding fund is in their personal name, but they're able to then pay for their kid's wedding, right? Their first house, pay cash for it. Pay cash for the couple's first house. The guy said, I just make my kids sign a little one-page letter that promises that they will never go into debt for anything if I give them a free house so that I'm the last person with my last name to ever have any debt in this branch of the family tree. Wow. Completely break the cycle forever.

That's legacy. That's the definition right there.

It's That's fun. That's pretty cool. Dawn, she's approaching being able to do that. Yeah.

Well, I wanted to ask you about that. I was going to do it off there. I'll ask on now because this is good teaching. For those of us that are following the baby steps, I got about one-year-old little girl now, and I'm thinking about these things. Hey, I'd love to help cover. I want to cover the wedding, help maybe the 401(D) plan for her first car. I pitch in half, she gets some skin in the game, pitches in the other half. Obviously, pay for college, make sure we cash flow that. Maybe cover her first house, maybe with her spouse one Are those wise things to do? It's like getting an inheritance early in a way.

Yeah, it is very wise to do, but the wisdom is contingent upon the kid buying into the value system. If the kid's off the ranch, obviously, they're out there going crazy and whatever. We're doing heroine, I'm not buying them a house, right? I mean, obviously, your child's not going to be doing that. Dear God, I hope. But you know what I'm saying? Or if they marry somebody who's got a screw loose or something, then we're not going to do it. But if the two of you are sane and you buy into George and George's family values, and this is what down, it stopped.The truck is worth 28, but it has a $3,000 broken item, and you owe eight. Yeah. You're going to sell it for 25 because somebody's got to fix the turbo, and you're going to take the rest of the money and start settling your debts.Okay.Okay. Let's pretend you walk out of this with $15,000 or $20,000 cash after you sell the truck.Okay. I would say more $15 with the turbo and everything.I think you're probably right. I'm just saying, okay. He's making $1,500 a week, and he's working like a crazy man. He's not scared of work. He's not. He's a hard worker. You all have not been good at the business side of it, but he knows how to drive truck and he knows how to work, and he can go make money, and he's good at that. We got a $6,000 a month income now, and you got babies. Is there anything you can do from home to add income?I'm looking to see if I can find a job from home. I used to work in the pharmacy as a tech, and I was going back to school. I wanted to go back to school.You're not back to school right now. Right now, we're trying to eat. Okay. Yeah. Right now, we need any income you can create that's legal and moral and doesn't leave your family in jeopardy, okay? Yeah. If he's making six and you could pull in another two, now we got to work with. We got 15 from want to take the profits and reinvest them into equipment to make the company grow more, which would not cause you to grow 33%. You got to just, what are they doing with the profits? How are they booking that to cause this? It's not just as simple as, Oh, we made a bunch of money. It's not that easy. This is The Ramsey Show. Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. George Campbell, Ramsey personality, is my co-host today. He is a number one best-selling author and the co-host of Smart Money Happy Hour on the Ramsey Networks. Be sure and check out all of it. In the meantime, you can call us right here and we'll talk at 825-5225.Natalie is with us in Portland, Maine. Hi, Natalie. How are you? Good. How are you? Better than I deserve. What's up?This is crazy that you I picked up my call because I've been listening to you every day. I'm 26 and I'm about $150,000 in debt, and I'm just dreaming, trying to figure out how can I change my life? How can I get out of this debt? I I just feel like I'm stuck. I just really need your advice on how I get out of this financial mess. I think housing is a big part of my budget that I really can't afford right now.Okay. What are you making?I actually just got a new job, and I'm making 55 base, and I'm in medical sales, so I'm going to be able to get commission.Great. You think it'll be like 100K with your commission?I I hope so because that would make a significant impact on me that I think. Absolutely. I have one with my boyfriend as well.Okay.What is the 150 in debt?Eighty-eight of it is student loans. My It's a monthly payment fix, and it's not insane. That's about $105 a month. But the credit cards is really where I got into trouble, and I had to move unexpectedly. asking me before they list it.But what's the benefit to you? There's no benefit to you before they list it. You're not getting a deal. There's no bargain.I guess the benefit is that no one else would be able to make an offer on it.Oh, yeah. Okay. If you had a transaction you were comfortable with and you can go through and get your mortgage and everything, you can go to a title company, get a contract drawn up, and do this. I think this transaction is so far from happening that you probably do need a pro in your corner to help you navigate the negotiation and then help you navigate the closing, help you navigate the appraisal, help you navigate the getting the mortgage and all the different things, all of things you don't know how to do. But if you had all those things already lined up, you could. You don't have to have a real estate agent, but you can, in this case, I think you benefit from one. If they list it, typically what happens is the listing agent, in this case, the property manager, they're going to put a 6% commission on it or something about like that. Then the agent that represents the buyer is going to split that with the selling agent, typically. That's a normal transaction. If you get a real estate agent to represent you and they work with the selling agent before it actually goes on the market, but a commission is still paid, it didn't cost you anything.It cost them something. Let me tell you, if you just buy it right now, I think this agent is going to get both of the commissions. They're I'm probably going to charge that seller a full commission. So, yes, the answer is I'd go get a real estate agent. Yes. In your situation, I would. Yes. I mean, it's borderline, but I think there's a lot of A, there's another real estate agent already involved. Okay. B, you don't like the comps, so you got some negotiating to do. C, you got to have somebody walk you through the closing process and the mortgage-getting process and the appraisal process. So all of those things tell me, Yeah, I put a real estate agent in your corner.It's just worth it for the stress factor at this point.Well, and the expertise to guide you through a journey that you've never been on.I might negotiate and save you 30 grand to where it was worth it.Ramseysolutions. Com/agent will help you find a Ramsey-trusted agent in your area to help you do that. This is the Ramsey Show. Our scripture of the day, Ecclesiastes It is better that you should not vow than that you should vow and not pay. John Adams said, There are two ways to conquer and enslave a country. One is by the sword, the other is by debt. Ask the Chinese.It's good foreshadowing.Just got a little bit of a conspiracy theory chill.About 300 years later, and here we are, trillions in debt to other countries, Dave.There you go. Scary. Bradley's in Chicago. Hey, Bradley, welcome to The Ramsey Show.Hello. I want to thank you both so much for having me. I know you hear this all the time, but you've definitely made a positive change in my life.Well, thank you, sir. How can we help today?Yeah, Absolutely. I made the decision to loan out money to family and friends of mine in the total sum of just over $8,000. As time goes on, given the lifestyle that they lead, it's starting to leave a sour taste in my mouth a little bit. I guess my question is, how do I hold them accountable to make me whole and pay me back without straining the friendships? My marriage, because I just got married in November, and my wife, this was before we got married, but she had vouched for her cousin as somebody for me to loan out money to. That's three of the eight grand, and it's been over a year, and I've only seen 500 of it since.So what is your income?Yeah, just over 100. I sell software, so it's a little bit variable, but it's been over 100 for the past three years.Why did you become the lender? Was it word of mouth, Hey, this guy will own you some money. Go to him.So my wife's cousin originally owed money to who is now my mother-in-law, and the cousin didn't like how difficult or tough to work. It sounded like the mother-in-law was trying to hold her accountable and put her feet to the fire and was complaining to my wife about it. My wife turned to me and said, Hey, I know you've got some money. Can we help her out? Then my other friend just knew that I was in a good position. He didn't ask me for the money. I just knew that he was in trouble I decided to give him five of the eight. But at the same time, he has a Corvette. He has two cars, both in that on those and live the life in Alibaba.You knew that when you gave him the money, right?Yeah, I didn't know that when I gave them the money.You're probably not going to like my answer.Oh, no. Okay.I think you've learned a very harsh Lesson. Never loan people money. If you want to help people, give them some money, but don't loan them any money because it changes your relationship with your friend and your wife's to master slave. You're the master, they're the slave. Even if you're a nice master, you're still a master. The borrower is slave to the lender 100% of the time. That's what you're feeling here. Is that these people are unappreciative, they're out of control. But guess what? They were both of those things before you gave them money, and you just got to now experience it personally. My opinion is that you wrote an $8,000 check for tuition to the School of Life, and the School of Life just gave you a passing grade on never loan people money. You have passed that class now. You paid the stupid tax. If I woke up in your shoes with your situation, I would tell your wife, first thing I do, sit down with her and say, Okay, I've made the decision that I made a mistake when I loaned your cousin money and when I loaned my friend money. If we were going to help them, we should have given them money.Go ahead and understand that from this point forward, I will never loan money to a family member again. As long as you see me breathing, that will not occur. You and your wife get on the same page about that. Then I'd call up your friend and say, If you can pay me, that would be nice. But if you don't pay me, I want you to know I'm just going to forgive the debt because your friendship is more important. Tell the cousin the exact same thing, and I'll give you about a 98% chance you get no money. But by the way, even if you don't do this, I'm going to give you a 98% chance you get no money. You loaned broke people money Don't be shocked, they don't pay you. I would forgive the debt and walk away. This is costing you more angst and- A soul tax isn't worth it. And soul tax. It's taxing your brain. You are thinking about it. They aren't.You're worried about straining the relationship. It's already strained. I don't know that it's ever going to go back to the way it was, even if- If they came in and wrote you a check today and both of them paid you, you still don't have any respect for either one of these people.I don't know if I'd say that.I don't. I don't have any respect for either one of them.It's not going to go back to the way it was before you lent them money. As soon as you offer that money, the relationship changed.I mean, it sounds like your friend is a person who just spends too much and is out of control as a typical American, and it sounds like your wife's cousin is a complete parasite.Bradley's a sweet guy, and people are going to go, Well, Brad will give me some money. I'll be fine. Yeah.And, buddy, I would end the bank of Bradley. Closing up shop on the bank of Bradley. We're done with that puppy.That's a boundary that people please, which I'm one of them, recovering people pleaser. They have to put boundary and go as nice of a guy as I am, I'm not going to do it.I don't do that. The only thing I can do is give you money, and I don't have anybody right now to give you.That's it. I love the quote, Choose guilt over resentment. Right now, Bradley's dealing with the other side, resentment. Choose guilt that you couldn't and you didn't, versus the resentment of I did and I regret it.If I woke up in your shoes, sir, having done what you've done, I would just walk away. I think it's costing you more than $8,000 in your in your soul and in your relationship. You're even a tiny bit resentful towards your wife for asking you to do this for her cousin who's a parasite. I'm going to put an end to every bit of that. I'm just going to say, I'm done. I'm not going to think about it anymore. No more money. I have zero expectation. The secret to happiness is low expectations. It's like my golf game.It's working out so far.I'm not going to get mad about something Something that I have no expectation is actually going to occur. That's pretty easy. Because that's what happens. If it only costs you $8,000 to learn this lesson… It was cheap. That was cheap. That was a deal. That was cheap stupid tax. Very cheap stupid tax.Dave's done it with way more zeros on the end.Yeah, I definitely have done it with a lot of a lot of dumber things and a lot of bigger things. It's the never again principle. Once you do something dumb, you say, Okay, that's in the never again We never again do that. That way I may lose money another way, but I won't lose money that way. Never again.Well, the hardest part is not forgiving the other person. It's forgiving yourself because you just think, Gosh, how did I do something so dumb? I can't let this go, and it causes anger inside of you. That's a difficult thing.It is. Because if you look at it objectively, neither one of these characters were worthy of a loan. They weren't. I mean, who would loan these people money if you weren't- I'm guessing a bank wouldn't lend them money.No, they wouldn't. Which is why they went to him.Exactly. The Bank of Bradley.It's got a nice ring to it, honestly.It's closed, though. Closed for business. It's no longer open for business.We liquidated the That's it.Got a little sign on the front, like the Persian rug place, going out of business.Eighty % off.Going out of business.And yet somehow still too expensive.Fourteen years later, we're still going out of business.And you still got ripped off on that rug. That's it. Not fool me once.Bradley, I'm sorry. I hate it for you, man, but that's what I would do. That puts us hour of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, folks. Dave Ramsey here. You know budgeting doesn't have to be boring. You just need a budgeting app that's made with you in mind, and that's EveryDollar. The EveryDollar app has helped millions of people work the baby steps and take the stress out of planning and managing their money. Start budgeting with EveryDollar for free right now. Just go to ramseysolutions. Com/everydollar and download the app today. That's ramseysolutions. Com/everydollar.

down, it stopped.

The truck is worth 28, but it has a $3,000 broken item, and you owe eight. Yeah. You're going to sell it for 25 because somebody's got to fix the turbo, and you're going to take the rest of the money and start settling your debts.

Okay.

Okay. Let's pretend you walk out of this with $15,000 or $20,000 cash after you sell the truck.

Okay. I would say more $15 with the turbo and everything.

I think you're probably right. I'm just saying, okay. He's making $1,500 a week, and he's working like a crazy man. He's not scared of work. He's not. He's a hard worker. You all have not been good at the business side of it, but he knows how to drive truck and he knows how to work, and he can go make money, and he's good at that. We got a $6,000 a month income now, and you got babies. Is there anything you can do from home to add income?

I'm looking to see if I can find a job from home. I used to work in the pharmacy as a tech, and I was going back to school. I wanted to go back to school.

You're not back to school right now. Right now, we're trying to eat. Okay. Yeah. Right now, we need any income you can create that's legal and moral and doesn't leave your family in jeopardy, okay? Yeah. If he's making six and you could pull in another two, now we got to work with. We got 15 from want to take the profits and reinvest them into equipment to make the company grow more, which would not cause you to grow 33%. You got to just, what are they doing with the profits? How are they booking that to cause this? It's not just as simple as, Oh, we made a bunch of money. It's not that easy. This is The Ramsey Show. Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. George Campbell, Ramsey personality, is my co-host today. He is a number one best-selling author and the co-host of Smart Money Happy Hour on the Ramsey Networks. Be sure and check out all of it. In the meantime, you can call us right here and we'll talk at 825-5225.Natalie is with us in Portland, Maine. Hi, Natalie. How are you? Good. How are you? Better than I deserve. What's up?This is crazy that you I picked up my call because I've been listening to you every day. I'm 26 and I'm about $150,000 in debt, and I'm just dreaming, trying to figure out how can I change my life? How can I get out of this debt? I I just feel like I'm stuck. I just really need your advice on how I get out of this financial mess. I think housing is a big part of my budget that I really can't afford right now.Okay. What are you making?I actually just got a new job, and I'm making 55 base, and I'm in medical sales, so I'm going to be able to get commission.Great. You think it'll be like 100K with your commission?I I hope so because that would make a significant impact on me that I think. Absolutely. I have one with my boyfriend as well.Okay.What is the 150 in debt?Eighty-eight of it is student loans. My It's a monthly payment fix, and it's not insane. That's about $105 a month. But the credit cards is really where I got into trouble, and I had to move unexpectedly. asking me before they list it.But what's the benefit to you? There's no benefit to you before they list it. You're not getting a deal. There's no bargain.I guess the benefit is that no one else would be able to make an offer on it.Oh, yeah. Okay. If you had a transaction you were comfortable with and you can go through and get your mortgage and everything, you can go to a title company, get a contract drawn up, and do this. I think this transaction is so far from happening that you probably do need a pro in your corner to help you navigate the negotiation and then help you navigate the closing, help you navigate the appraisal, help you navigate the getting the mortgage and all the different things, all of things you don't know how to do. But if you had all those things already lined up, you could. You don't have to have a real estate agent, but you can, in this case, I think you benefit from one. If they list it, typically what happens is the listing agent, in this case, the property manager, they're going to put a 6% commission on it or something about like that. Then the agent that represents the buyer is going to split that with the selling agent, typically. That's a normal transaction. If you get a real estate agent to represent you and they work with the selling agent before it actually goes on the market, but a commission is still paid, it didn't cost you anything.It cost them something. Let me tell you, if you just buy it right now, I think this agent is going to get both of the commissions. They're I'm probably going to charge that seller a full commission. So, yes, the answer is I'd go get a real estate agent. Yes. In your situation, I would. Yes. I mean, it's borderline, but I think there's a lot of A, there's another real estate agent already involved. Okay. B, you don't like the comps, so you got some negotiating to do. C, you got to have somebody walk you through the closing process and the mortgage-getting process and the appraisal process. So all of those things tell me, Yeah, I put a real estate agent in your corner.It's just worth it for the stress factor at this point.Well, and the expertise to guide you through a journey that you've never been on.I might negotiate and save you 30 grand to where it was worth it.Ramseysolutions. Com/agent will help you find a Ramsey-trusted agent in your area to help you do that. This is the Ramsey Show. Our scripture of the day, Ecclesiastes It is better that you should not vow than that you should vow and not pay. John Adams said, There are two ways to conquer and enslave a country. One is by the sword, the other is by debt. Ask the Chinese.It's good foreshadowing.Just got a little bit of a conspiracy theory chill.About 300 years later, and here we are, trillions in debt to other countries, Dave.There you go. Scary. Bradley's in Chicago. Hey, Bradley, welcome to The Ramsey Show.Hello. I want to thank you both so much for having me. I know you hear this all the time, but you've definitely made a positive change in my life.Well, thank you, sir. How can we help today?Yeah, Absolutely. I made the decision to loan out money to family and friends of mine in the total sum of just over $8,000. As time goes on, given the lifestyle that they lead, it's starting to leave a sour taste in my mouth a little bit. I guess my question is, how do I hold them accountable to make me whole and pay me back without straining the friendships? My marriage, because I just got married in November, and my wife, this was before we got married, but she had vouched for her cousin as somebody for me to loan out money to. That's three of the eight grand, and it's been over a year, and I've only seen 500 of it since.So what is your income?Yeah, just over 100. I sell software, so it's a little bit variable, but it's been over 100 for the past three years.Why did you become the lender? Was it word of mouth, Hey, this guy will own you some money. Go to him.So my wife's cousin originally owed money to who is now my mother-in-law, and the cousin didn't like how difficult or tough to work. It sounded like the mother-in-law was trying to hold her accountable and put her feet to the fire and was complaining to my wife about it. My wife turned to me and said, Hey, I know you've got some money. Can we help her out? Then my other friend just knew that I was in a good position. He didn't ask me for the money. I just knew that he was in trouble I decided to give him five of the eight. But at the same time, he has a Corvette. He has two cars, both in that on those and live the life in Alibaba.You knew that when you gave him the money, right?Yeah, I didn't know that when I gave them the money.You're probably not going to like my answer.Oh, no. Okay.I think you've learned a very harsh Lesson. Never loan people money. If you want to help people, give them some money, but don't loan them any money because it changes your relationship with your friend and your wife's to master slave. You're the master, they're the slave. Even if you're a nice master, you're still a master. The borrower is slave to the lender 100% of the time. That's what you're feeling here. Is that these people are unappreciative, they're out of control. But guess what? They were both of those things before you gave them money, and you just got to now experience it personally. My opinion is that you wrote an $8,000 check for tuition to the School of Life, and the School of Life just gave you a passing grade on never loan people money. You have passed that class now. You paid the stupid tax. If I woke up in your shoes with your situation, I would tell your wife, first thing I do, sit down with her and say, Okay, I've made the decision that I made a mistake when I loaned your cousin money and when I loaned my friend money. If we were going to help them, we should have given them money.Go ahead and understand that from this point forward, I will never loan money to a family member again. As long as you see me breathing, that will not occur. You and your wife get on the same page about that. Then I'd call up your friend and say, If you can pay me, that would be nice. But if you don't pay me, I want you to know I'm just going to forgive the debt because your friendship is more important. Tell the cousin the exact same thing, and I'll give you about a 98% chance you get no money. But by the way, even if you don't do this, I'm going to give you a 98% chance you get no money. You loaned broke people money Don't be shocked, they don't pay you. I would forgive the debt and walk away. This is costing you more angst and- A soul tax isn't worth it. And soul tax. It's taxing your brain. You are thinking about it. They aren't.You're worried about straining the relationship. It's already strained. I don't know that it's ever going to go back to the way it was, even if- If they came in and wrote you a check today and both of them paid you, you still don't have any respect for either one of these people.I don't know if I'd say that.I don't. I don't have any respect for either one of them.It's not going to go back to the way it was before you lent them money. As soon as you offer that money, the relationship changed.I mean, it sounds like your friend is a person who just spends too much and is out of control as a typical American, and it sounds like your wife's cousin is a complete parasite.Bradley's a sweet guy, and people are going to go, Well, Brad will give me some money. I'll be fine. Yeah.And, buddy, I would end the bank of Bradley. Closing up shop on the bank of Bradley. We're done with that puppy.That's a boundary that people please, which I'm one of them, recovering people pleaser. They have to put boundary and go as nice of a guy as I am, I'm not going to do it.I don't do that. The only thing I can do is give you money, and I don't have anybody right now to give you.That's it. I love the quote, Choose guilt over resentment. Right now, Bradley's dealing with the other side, resentment. Choose guilt that you couldn't and you didn't, versus the resentment of I did and I regret it.If I woke up in your shoes, sir, having done what you've done, I would just walk away. I think it's costing you more than $8,000 in your in your soul and in your relationship. You're even a tiny bit resentful towards your wife for asking you to do this for her cousin who's a parasite. I'm going to put an end to every bit of that. I'm just going to say, I'm done. I'm not going to think about it anymore. No more money. I have zero expectation. The secret to happiness is low expectations. It's like my golf game.It's working out so far.I'm not going to get mad about something Something that I have no expectation is actually going to occur. That's pretty easy. Because that's what happens. If it only costs you $8,000 to learn this lesson… It was cheap. That was cheap. That was a deal. That was cheap stupid tax. Very cheap stupid tax.Dave's done it with way more zeros on the end.Yeah, I definitely have done it with a lot of a lot of dumber things and a lot of bigger things. It's the never again principle. Once you do something dumb, you say, Okay, that's in the never again We never again do that. That way I may lose money another way, but I won't lose money that way. Never again.Well, the hardest part is not forgiving the other person. It's forgiving yourself because you just think, Gosh, how did I do something so dumb? I can't let this go, and it causes anger inside of you. That's a difficult thing.It is. Because if you look at it objectively, neither one of these characters were worthy of a loan. They weren't. I mean, who would loan these people money if you weren't- I'm guessing a bank wouldn't lend them money.No, they wouldn't. Which is why they went to him.Exactly. The Bank of Bradley.It's got a nice ring to it, honestly.It's closed, though. Closed for business. It's no longer open for business.We liquidated the That's it.Got a little sign on the front, like the Persian rug place, going out of business.Eighty % off.Going out of business.And yet somehow still too expensive.Fourteen years later, we're still going out of business.And you still got ripped off on that rug. That's it. Not fool me once.Bradley, I'm sorry. I hate it for you, man, but that's what I would do. That puts us hour of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, folks. Dave Ramsey here. You know budgeting doesn't have to be boring. You just need a budgeting app that's made with you in mind, and that's EveryDollar. The EveryDollar app has helped millions of people work the baby steps and take the stress out of planning and managing their money. Start budgeting with EveryDollar for free right now. Just go to ramseysolutions. Com/everydollar and download the app today. That's ramseysolutions. Com/everydollar.

want to take the profits and reinvest them into equipment to make the company grow more, which would not cause you to grow 33%. You got to just, what are they doing with the profits? How are they booking that to cause this? It's not just as simple as, Oh, we made a bunch of money. It's not that easy. This is The Ramsey Show. Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. George Campbell, Ramsey personality, is my co-host today. He is a number one best-selling author and the co-host of Smart Money Happy Hour on the Ramsey Networks. Be sure and check out all of it. In the meantime, you can call us right here and we'll talk at 825-5225.

Natalie is with us in Portland, Maine. Hi, Natalie. How are you? Good. How are you? Better than I deserve. What's up?

This is crazy that you I picked up my call because I've been listening to you every day. I'm 26 and I'm about $150,000 in debt, and I'm just dreaming, trying to figure out how can I change my life? How can I get out of this debt? I I just feel like I'm stuck. I just really need your advice on how I get out of this financial mess. I think housing is a big part of my budget that I really can't afford right now.

Okay. What are you making?

I actually just got a new job, and I'm making 55 base, and I'm in medical sales, so I'm going to be able to get commission.

Great. You think it'll be like 100K with your commission?

I I hope so because that would make a significant impact on me that I think. Absolutely. I have one with my boyfriend as well.

Okay.

What is the 150 in debt?

Eighty-eight of it is student loans. My It's a monthly payment fix, and it's not insane. That's about $105 a month. But the credit cards is really where I got into trouble, and I had to move unexpectedly. asking me before they list it.But what's the benefit to you? There's no benefit to you before they list it. You're not getting a deal. There's no bargain.I guess the benefit is that no one else would be able to make an offer on it.Oh, yeah. Okay. If you had a transaction you were comfortable with and you can go through and get your mortgage and everything, you can go to a title company, get a contract drawn up, and do this. I think this transaction is so far from happening that you probably do need a pro in your corner to help you navigate the negotiation and then help you navigate the closing, help you navigate the appraisal, help you navigate the getting the mortgage and all the different things, all of things you don't know how to do. But if you had all those things already lined up, you could. You don't have to have a real estate agent, but you can, in this case, I think you benefit from one. If they list it, typically what happens is the listing agent, in this case, the property manager, they're going to put a 6% commission on it or something about like that. Then the agent that represents the buyer is going to split that with the selling agent, typically. That's a normal transaction. If you get a real estate agent to represent you and they work with the selling agent before it actually goes on the market, but a commission is still paid, it didn't cost you anything.It cost them something. Let me tell you, if you just buy it right now, I think this agent is going to get both of the commissions. They're I'm probably going to charge that seller a full commission. So, yes, the answer is I'd go get a real estate agent. Yes. In your situation, I would. Yes. I mean, it's borderline, but I think there's a lot of A, there's another real estate agent already involved. Okay. B, you don't like the comps, so you got some negotiating to do. C, you got to have somebody walk you through the closing process and the mortgage-getting process and the appraisal process. So all of those things tell me, Yeah, I put a real estate agent in your corner.It's just worth it for the stress factor at this point.Well, and the expertise to guide you through a journey that you've never been on.I might negotiate and save you 30 grand to where it was worth it.Ramseysolutions. Com/agent will help you find a Ramsey-trusted agent in your area to help you do that. This is the Ramsey Show. Our scripture of the day, Ecclesiastes It is better that you should not vow than that you should vow and not pay. John Adams said, There are two ways to conquer and enslave a country. One is by the sword, the other is by debt. Ask the Chinese.It's good foreshadowing.Just got a little bit of a conspiracy theory chill.About 300 years later, and here we are, trillions in debt to other countries, Dave.There you go. Scary. Bradley's in Chicago. Hey, Bradley, welcome to The Ramsey Show.Hello. I want to thank you both so much for having me. I know you hear this all the time, but you've definitely made a positive change in my life.Well, thank you, sir. How can we help today?Yeah, Absolutely. I made the decision to loan out money to family and friends of mine in the total sum of just over $8,000. As time goes on, given the lifestyle that they lead, it's starting to leave a sour taste in my mouth a little bit. I guess my question is, how do I hold them accountable to make me whole and pay me back without straining the friendships? My marriage, because I just got married in November, and my wife, this was before we got married, but she had vouched for her cousin as somebody for me to loan out money to. That's three of the eight grand, and it's been over a year, and I've only seen 500 of it since.So what is your income?Yeah, just over 100. I sell software, so it's a little bit variable, but it's been over 100 for the past three years.Why did you become the lender? Was it word of mouth, Hey, this guy will own you some money. Go to him.So my wife's cousin originally owed money to who is now my mother-in-law, and the cousin didn't like how difficult or tough to work. It sounded like the mother-in-law was trying to hold her accountable and put her feet to the fire and was complaining to my wife about it. My wife turned to me and said, Hey, I know you've got some money. Can we help her out? Then my other friend just knew that I was in a good position. He didn't ask me for the money. I just knew that he was in trouble I decided to give him five of the eight. But at the same time, he has a Corvette. He has two cars, both in that on those and live the life in Alibaba.You knew that when you gave him the money, right?Yeah, I didn't know that when I gave them the money.You're probably not going to like my answer.Oh, no. Okay.I think you've learned a very harsh Lesson. Never loan people money. If you want to help people, give them some money, but don't loan them any money because it changes your relationship with your friend and your wife's to master slave. You're the master, they're the slave. Even if you're a nice master, you're still a master. The borrower is slave to the lender 100% of the time. That's what you're feeling here. Is that these people are unappreciative, they're out of control. But guess what? They were both of those things before you gave them money, and you just got to now experience it personally. My opinion is that you wrote an $8,000 check for tuition to the School of Life, and the School of Life just gave you a passing grade on never loan people money. You have passed that class now. You paid the stupid tax. If I woke up in your shoes with your situation, I would tell your wife, first thing I do, sit down with her and say, Okay, I've made the decision that I made a mistake when I loaned your cousin money and when I loaned my friend money. If we were going to help them, we should have given them money.Go ahead and understand that from this point forward, I will never loan money to a family member again. As long as you see me breathing, that will not occur. You and your wife get on the same page about that. Then I'd call up your friend and say, If you can pay me, that would be nice. But if you don't pay me, I want you to know I'm just going to forgive the debt because your friendship is more important. Tell the cousin the exact same thing, and I'll give you about a 98% chance you get no money. But by the way, even if you don't do this, I'm going to give you a 98% chance you get no money. You loaned broke people money Don't be shocked, they don't pay you. I would forgive the debt and walk away. This is costing you more angst and- A soul tax isn't worth it. And soul tax. It's taxing your brain. You are thinking about it. They aren't.You're worried about straining the relationship. It's already strained. I don't know that it's ever going to go back to the way it was, even if- If they came in and wrote you a check today and both of them paid you, you still don't have any respect for either one of these people.I don't know if I'd say that.I don't. I don't have any respect for either one of them.It's not going to go back to the way it was before you lent them money. As soon as you offer that money, the relationship changed.I mean, it sounds like your friend is a person who just spends too much and is out of control as a typical American, and it sounds like your wife's cousin is a complete parasite.Bradley's a sweet guy, and people are going to go, Well, Brad will give me some money. I'll be fine. Yeah.And, buddy, I would end the bank of Bradley. Closing up shop on the bank of Bradley. We're done with that puppy.That's a boundary that people please, which I'm one of them, recovering people pleaser. They have to put boundary and go as nice of a guy as I am, I'm not going to do it.I don't do that. The only thing I can do is give you money, and I don't have anybody right now to give you.That's it. I love the quote, Choose guilt over resentment. Right now, Bradley's dealing with the other side, resentment. Choose guilt that you couldn't and you didn't, versus the resentment of I did and I regret it.If I woke up in your shoes, sir, having done what you've done, I would just walk away. I think it's costing you more than $8,000 in your in your soul and in your relationship. You're even a tiny bit resentful towards your wife for asking you to do this for her cousin who's a parasite. I'm going to put an end to every bit of that. I'm just going to say, I'm done. I'm not going to think about it anymore. No more money. I have zero expectation. The secret to happiness is low expectations. It's like my golf game.It's working out so far.I'm not going to get mad about something Something that I have no expectation is actually going to occur. That's pretty easy. Because that's what happens. If it only costs you $8,000 to learn this lesson… It was cheap. That was cheap. That was a deal. That was cheap stupid tax. Very cheap stupid tax.Dave's done it with way more zeros on the end.Yeah, I definitely have done it with a lot of a lot of dumber things and a lot of bigger things. It's the never again principle. Once you do something dumb, you say, Okay, that's in the never again We never again do that. That way I may lose money another way, but I won't lose money that way. Never again.Well, the hardest part is not forgiving the other person. It's forgiving yourself because you just think, Gosh, how did I do something so dumb? I can't let this go, and it causes anger inside of you. That's a difficult thing.It is. Because if you look at it objectively, neither one of these characters were worthy of a loan. They weren't. I mean, who would loan these people money if you weren't- I'm guessing a bank wouldn't lend them money.No, they wouldn't. Which is why they went to him.Exactly. The Bank of Bradley.It's got a nice ring to it, honestly.It's closed, though. Closed for business. It's no longer open for business.We liquidated the That's it.Got a little sign on the front, like the Persian rug place, going out of business.Eighty % off.Going out of business.And yet somehow still too expensive.Fourteen years later, we're still going out of business.And you still got ripped off on that rug. That's it. Not fool me once.Bradley, I'm sorry. I hate it for you, man, but that's what I would do. That puts us hour of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, folks. Dave Ramsey here. You know budgeting doesn't have to be boring. You just need a budgeting app that's made with you in mind, and that's EveryDollar. The EveryDollar app has helped millions of people work the baby steps and take the stress out of planning and managing their money. Start budgeting with EveryDollar for free right now. Just go to ramseysolutions. Com/everydollar and download the app today. That's ramseysolutions. Com/everydollar.

asking me before they list it.

But what's the benefit to you? There's no benefit to you before they list it. You're not getting a deal. There's no bargain.

I guess the benefit is that no one else would be able to make an offer on it.

Oh, yeah. Okay. If you had a transaction you were comfortable with and you can go through and get your mortgage and everything, you can go to a title company, get a contract drawn up, and do this. I think this transaction is so far from happening that you probably do need a pro in your corner to help you navigate the negotiation and then help you navigate the closing, help you navigate the appraisal, help you navigate the getting the mortgage and all the different things, all of things you don't know how to do. But if you had all those things already lined up, you could. You don't have to have a real estate agent, but you can, in this case, I think you benefit from one. If they list it, typically what happens is the listing agent, in this case, the property manager, they're going to put a 6% commission on it or something about like that. Then the agent that represents the buyer is going to split that with the selling agent, typically. That's a normal transaction. If you get a real estate agent to represent you and they work with the selling agent before it actually goes on the market, but a commission is still paid, it didn't cost you anything.

It cost them something. Let me tell you, if you just buy it right now, I think this agent is going to get both of the commissions. They're I'm probably going to charge that seller a full commission. So, yes, the answer is I'd go get a real estate agent. Yes. In your situation, I would. Yes. I mean, it's borderline, but I think there's a lot of A, there's another real estate agent already involved. Okay. B, you don't like the comps, so you got some negotiating to do. C, you got to have somebody walk you through the closing process and the mortgage-getting process and the appraisal process. So all of those things tell me, Yeah, I put a real estate agent in your corner.

It's just worth it for the stress factor at this point.

Well, and the expertise to guide you through a journey that you've never been on.

I might negotiate and save you 30 grand to where it was worth it.

Ramseysolutions. Com/agent will help you find a Ramsey-trusted agent in your area to help you do that. This is the Ramsey Show. Our scripture of the day, Ecclesiastes It is better that you should not vow than that you should vow and not pay. John Adams said, There are two ways to conquer and enslave a country. One is by the sword, the other is by debt. Ask the Chinese.

It's good foreshadowing.

Just got a little bit of a conspiracy theory chill.

About 300 years later, and here we are, trillions in debt to other countries, Dave.

There you go. Scary. Bradley's in Chicago. Hey, Bradley, welcome to The Ramsey Show.

Hello. I want to thank you both so much for having me. I know you hear this all the time, but you've definitely made a positive change in my life.

Well, thank you, sir. How can we help today?

Yeah, Absolutely. I made the decision to loan out money to family and friends of mine in the total sum of just over $8,000. As time goes on, given the lifestyle that they lead, it's starting to leave a sour taste in my mouth a little bit. I guess my question is, how do I hold them accountable to make me whole and pay me back without straining the friendships? My marriage, because I just got married in November, and my wife, this was before we got married, but she had vouched for her cousin as somebody for me to loan out money to. That's three of the eight grand, and it's been over a year, and I've only seen 500 of it since.

So what is your income?

Yeah, just over 100. I sell software, so it's a little bit variable, but it's been over 100 for the past three years.

Why did you become the lender? Was it word of mouth, Hey, this guy will own you some money. Go to him.

So my wife's cousin originally owed money to who is now my mother-in-law, and the cousin didn't like how difficult or tough to work. It sounded like the mother-in-law was trying to hold her accountable and put her feet to the fire and was complaining to my wife about it. My wife turned to me and said, Hey, I know you've got some money. Can we help her out? Then my other friend just knew that I was in a good position. He didn't ask me for the money. I just knew that he was in trouble I decided to give him five of the eight. But at the same time, he has a Corvette. He has two cars, both in that on those and live the life in Alibaba.

You knew that when you gave him the money, right?

Yeah, I didn't know that when I gave them the money.

You're probably not going to like my answer.

Oh, no. Okay.

I think you've learned a very harsh Lesson. Never loan people money. If you want to help people, give them some money, but don't loan them any money because it changes your relationship with your friend and your wife's to master slave. You're the master, they're the slave. Even if you're a nice master, you're still a master. The borrower is slave to the lender 100% of the time. That's what you're feeling here. Is that these people are unappreciative, they're out of control. But guess what? They were both of those things before you gave them money, and you just got to now experience it personally. My opinion is that you wrote an $8,000 check for tuition to the School of Life, and the School of Life just gave you a passing grade on never loan people money. You have passed that class now. You paid the stupid tax. If I woke up in your shoes with your situation, I would tell your wife, first thing I do, sit down with her and say, Okay, I've made the decision that I made a mistake when I loaned your cousin money and when I loaned my friend money. If we were going to help them, we should have given them money.

Go ahead and understand that from this point forward, I will never loan money to a family member again. As long as you see me breathing, that will not occur. You and your wife get on the same page about that. Then I'd call up your friend and say, If you can pay me, that would be nice. But if you don't pay me, I want you to know I'm just going to forgive the debt because your friendship is more important. Tell the cousin the exact same thing, and I'll give you about a 98% chance you get no money. But by the way, even if you don't do this, I'm going to give you a 98% chance you get no money. You loaned broke people money Don't be shocked, they don't pay you. I would forgive the debt and walk away. This is costing you more angst and- A soul tax isn't worth it. And soul tax. It's taxing your brain. You are thinking about it. They aren't.

You're worried about straining the relationship. It's already strained. I don't know that it's ever going to go back to the way it was, even if- If they came in and wrote you a check today and both of them paid you, you still don't have any respect for either one of these people.

I don't know if I'd say that.

I don't. I don't have any respect for either one of them.

It's not going to go back to the way it was before you lent them money. As soon as you offer that money, the relationship changed.

I mean, it sounds like your friend is a person who just spends too much and is out of control as a typical American, and it sounds like your wife's cousin is a complete parasite.

Bradley's a sweet guy, and people are going to go, Well, Brad will give me some money. I'll be fine. Yeah.

And, buddy, I would end the bank of Bradley. Closing up shop on the bank of Bradley. We're done with that puppy.

That's a boundary that people please, which I'm one of them, recovering people pleaser. They have to put boundary and go as nice of a guy as I am, I'm not going to do it.

I don't do that. The only thing I can do is give you money, and I don't have anybody right now to give you.

That's it. I love the quote, Choose guilt over resentment. Right now, Bradley's dealing with the other side, resentment. Choose guilt that you couldn't and you didn't, versus the resentment of I did and I regret it.

If I woke up in your shoes, sir, having done what you've done, I would just walk away. I think it's costing you more than $8,000 in your in your soul and in your relationship. You're even a tiny bit resentful towards your wife for asking you to do this for her cousin who's a parasite. I'm going to put an end to every bit of that. I'm just going to say, I'm done. I'm not going to think about it anymore. No more money. I have zero expectation. The secret to happiness is low expectations. It's like my golf game.

It's working out so far.

I'm not going to get mad about something Something that I have no expectation is actually going to occur. That's pretty easy. Because that's what happens. If it only costs you $8,000 to learn this lesson… It was cheap. That was cheap. That was a deal. That was cheap stupid tax. Very cheap stupid tax.

Dave's done it with way more zeros on the end.

Yeah, I definitely have done it with a lot of a lot of dumber things and a lot of bigger things. It's the never again principle. Once you do something dumb, you say, Okay, that's in the never again We never again do that. That way I may lose money another way, but I won't lose money that way. Never again.

Well, the hardest part is not forgiving the other person. It's forgiving yourself because you just think, Gosh, how did I do something so dumb? I can't let this go, and it causes anger inside of you. That's a difficult thing.

It is. Because if you look at it objectively, neither one of these characters were worthy of a loan. They weren't. I mean, who would loan these people money if you weren't- I'm guessing a bank wouldn't lend them money.

No, they wouldn't. Which is why they went to him.

Exactly. The Bank of Bradley.

It's got a nice ring to it, honestly.

It's closed, though. Closed for business. It's no longer open for business.

We liquidated the That's it.

Got a little sign on the front, like the Persian rug place, going out of business.

Eighty % off.

Going out of business.

And yet somehow still too expensive.

Fourteen years later, we're still going out of business.

And you still got ripped off on that rug. That's it. Not fool me once.

Bradley, I'm sorry. I hate it for you, man, but that's what I would do. That puts us hour of the Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, folks. Dave Ramsey here. You know budgeting doesn't have to be boring. You just need a budgeting app that's made with you in mind, and that's EveryDollar. The EveryDollar app has helped millions of people work the baby steps and take the stress out of planning and managing their money. Start budgeting with EveryDollar for free right now. Just go to ramseysolutions. Com/everydollar and download the app today. That's ramseysolutions. Com/everydollar.