Don’t Try To Solve an Income Problem With More Debt
The Ramsey Show
Deep Dive
Why did Eric from Seattle pay off his business partner's $16K debt?
Eric paid off the $16K debt from his own pocket when his business partner, who had cancer, did not respond to his messages about covering his share. Eric did not want to press him due to his health condition.
Why is Michael struggling financially despite having a side business?
Michael is struggling financially because he is living paycheck to paycheck, making under $40K a year, and has significant debt in the form of car loans and a mortgage. His side business, while promising, is not yet profitable enough to cover his expenses.
What advice does the host give to Drew about his upside-down car loan?
The host advises Drew not to do a voluntary repossession, as it would severely damage his credit. Instead, he should focus on paying off the $14K debt as quickly as possible to get out of the upside-down car loan situation.
Why does Isaac in Arizona accept a voluntary severance package?
Isaac accepts a voluntary severance package because he anticipates job instability in the tech industry and wants to have a financial cushion while he looks for new employment.
What does the host recommend for Brendan to help manage his $140K student loan debt?
The host recommends that Brendan continue making payments on his student loans and focus on paying off the smallest loan first while making minimum payments on the others. He also suggests considering a second job to accelerate debt repayment.
What is FICA and what does it fund?
FICA stands for the Federal Insurance Contributions Act. It is a payroll tax that funds social security and Medicare programs. Employers and employees both contribute to these taxes, which are deducted from paychecks.
Why is Vince from Indiana considering debt relief companies?
Vince is considering debt relief companies because he is struggling to manage his personal expenses, which exceed his income from his window cleaning business. He is behind on bills and has maxed out his credit cards, leaving him with few options to cover his deficits.
- $16,000 debt owed by former business partner.
- Former partner claims to have cancer but avoids contact.
- Options include direct confrontation, legal action, or letting the debt go.
Shownotes Transcript