Get Out of the Cycle of Debt and Choose Peace Instead
The Ramsey Show
Deep Dive
How can I resolve a defaulted private student loan?
Refinance the loan through a company like YRefy, which specializes in refinancing defaulted private student loans. They buy the loan at a discount, enabling them to offer lower interest rates and more manageable payment plans.
What's the best approach for handling defaulted credit cards after using a debt settlement company?
Stop paying the debt settlement company immediately. Create a budget and negotiate lump-sum settlements directly with each credit card company. Aim for a settlement of around 25% of the owed balance. Two crucial rules: obtain a written agreement before paying anything and never provide electronic access to your bank account.
Should I buy a house while separated but not yet divorced?
No, wait until the divorce is finalized. Buying a house while separated can complicate the divorce proceedings, as the property becomes part of the marital assets. Rent a place until the divorce is final to avoid potential financial and legal entanglements.
I earn a good salary but struggle to save. How can I improve my financial situation?
Create a detailed written budget and track your spending meticulously. Be mindful of emotional spending during challenging times. Prioritize saving a specific amount each month and consider increasing your income through additional work.
Should I keep a spare vehicle for backup after buying a more fuel-efficient car?
If you're focused on building wealth, sell the spare vehicle. The costs associated with maintaining and insuring an extra car can hinder your financial progress, especially at a younger age. Focus on building wealth now, so you can have a spare car later.
Should I sell my rental property or hire a property management company?
If you're tired of managing the property, consider selling it and investing in a less hands-on option like a Real Estate Investment Trust (REIT). While a property management company can handle tenant and repair issues, vacancies and major repairs will still be your responsibility.
My step-sister believes I should share my inheritance with her. What should I do?
You are not obligated to share your inheritance. Be kind and empathetic, but firmly explain that the inheritance was your father's decision. Offer emotional support but do not feel pressured to give away your money.
Should I help my boyfriend pay off his student loans before we get married?
Absolutely not. Do not pay off his loans before marriage. His refusal to marry you until his loans are paid is a red flag. If you want a healthy relationship, get married first. Then, as a married couple, you can decide together how to handle his debt.
Should I gift my daughter and her husband money for a house down payment?
Yes, if they are financially responsible and debt-free, gifting them money for a house down payment can be a wonderful gesture. Make it a special occasion, communicate your intentions clearly, and consider seeking tax advice to avoid gift tax implications.
How can my fiancé and I improve our debt-to-income ratio?
Get married. Until you are legally married, you are not financially tied to each other. Once married, combine your finances, create a budget, and follow the Baby Steps to pay off debt and build an emergency fund.
Shownotes Transcript