Brought to you by the Every Dollar App, start budgeting for free today. So my wife and I, we have a question about these two car payments we have every month. One is a Tesla, one is a truck. We owe 55,000, and the Tesla is about 35,000 on the truck.
The payment is 800, the Tesla payment is 1600. Oh gosh, how was that possible? I don't know if we bought it, one value of the car was high and the interest rates were low. My guess is you're underwater by like $30,000 on this tire word.
Yeah. And I say that as a Tesla driver. So, oh my goodness. Yeah.
Okay, what are these cars currently worth? Have you looked into that? The Tesla, I could get at high, I could get like 27,000. I got a dealer, I would get before it.
Oh my gosh. What about like private party value? Because dealers are going to take you to the cleaners with their mark up. I've seen them for sale.
I'm seeing them for sale between like 30 and 35,000. Okay. The model that I have. Let's have some hope here and say 35 and you owe 55.
What about the truck? The truck is fairly new, it's 23 and it is worth like private value from probably 42, 45. Okay. So that's a little better.
Okay. 30 grams minimum. Wow. What do you guys make?
Together, we make anywhere from like 40 to 45,000 a month. Amazing. Okay. Thank God.
If you had said a year, I was about to come through the microphone into your phone and get you. Like, we honestly, we just have a lot of expenses every month and we're fine. What other than that? Just kind of got out of control here.
We had three credit cards. We were in debt. We paid the two off. We have one more left for 19,000.
Okay. So, I can go to private school, three kids in private school, Christian private school. Is that a tuition that you pay or is there debt around it? Every month there's a debt.
We tried at least say, oh, get enough saved up to put pay off one. Keep that like monthly. Okay. Monthly debt a little bit lower.
We have a second mortgage on a house that we don't even own anymore that we sold. We're still paying on. How much is that? A month it is 1800.
What's the whole amount? Yeah. Yeah. Well, the whole amount is 56,000.
Okay. I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry. I don't have a glasses on, okay. So, the two cards we talked about, 19,000 of credit cards, 156,000 in a second mortgage on a house that you don't even have anymore.
What's your current mortgage? Just curious. 8,000. No, what's the full amount?
Oh, 800,000. Okay. So, I want to call out what I'm hearing, which is really common, Jeff that, I'm sorry, Dustin. I'm looking at the wrong screen.
I'm sorry, I don't have my glasses on. The thing I want to call out that I'm hearing is, you're very concerned with the month to month payment. And I think that when you are doing very well, like you are, it's very easy to go, it's very easy to go, I can afford the payment, I make $45,000 a month, I can afford the payment, I can afford the payment, and you're never looking at the big picture amount and therefore, yeah, it does start to accumulate really quickly. So you've kind of got to turn your whole thinking around and go, what the heck does the thing cost?
How much is it? Is it $55,000? And I think when you start looking at it like that, even with this great income that you have, it'll cause you to make different decisions. Yeah, so how are you guys going to get out of debt if you're continually going into it at this point?
Hey, sorry for the interruption. This is important. No one likes to think about dying, but one day your family will have to deal with everything you leave behind. So the question is, will it be easy or a total nightmare?
That's where Knockbox comes in. Knockbox is a kit with 15 categories and clear instructions that give your family an organized plan. So they're not sifting through old paperwork and guessing passwords and dealing with lawyers. So leave your family memories instead of a mess.
Grab your Knockbox kit today at knockbox.com slash Ramsey for the best discount available. That's knockbox.com slash Ramsey. How are you guys going to get out of debt if you're continually going into it at this point? Hey, man.
I mean, do we need to pull the kids out of private school? That's kind of what I'm here. I mean, I can't make that decision for you. It's a very personal decision.
I step on a lot of toes. But the simple truth is at this state of your personal finances, we can't afford private school. And that is a ridiculous thing to say talking to a guy who makes $500,000 a year. Yeah.
How much is the private school? What's the total amount? About, I think it's 3000 months. So you're paying 6000 a month on private school?
No, for everyone. 3k total. And you guys can't come up with 3k month making 45,000 a month. I think I'm confused why you're going into debt for that.
I don't think the private school is the problem. I mean, if I, if I have all the things I'm seeing, I feel like that would not, it's not not going to fix anything. I just think there needs to be a level of we're done with this. And I'm not, I can tell you're exhausted.
I just don't know your level of intensity you're ready to take on and your wife. Do you guys have anything in savings? We're ready to do it. I think most of our savings, we've been saving and just been going towards tackling the, tackling the debt and the duration.
That's great. I mean, how much do you have in savings and how much have you paid off using it so far? We paid off one credit card, 12,000. Okay.
Another one was 15. How much savings do you have left? I think we're, we have like four grants in savings going towards the the next debt. Okay.
Here's, here's one way to get out of these cars. It would be to basically pause your debt snowball for a month or two and stack up 30, 40 grand in cash to get out from these underwater cars to sell them and buy some Peter cars in the meantime. Yeah. That's, that's what we were thinking.
I was driving around with this Tesla seeing what, seeing what I can get for it. Well, how would you say you save? You need the amount you're under water on, you need the difference in order to clear the title in order to sell it. So that's what I'm saying.
If you're underwater by 30 grand, stack up 30 grand really fast so you can clear the title when you sell it. We're still, we're still, we're, listen, you're going to pay off your debt, but we're still not focused on the main, main problem. You make $45,000 a month and we're talking about $3,000 for school, $2,400 on cars. That's 5,000.
And now your mortgage is reasonable. It's 800,000. That's reasonable for what you earn. So that's not killing you.
The second mortgage is not killing you. It's your budget, dude. Like you guys are, you guys are just spending, I guarantee no one is thinking on how much your wife says, I want to get this bag. She buys the bag.
You think, Hey, let's redo the carpets. We redo the car. I just feel like on a month a month a month, you guys are just going bananas because truly George, the things that he's saying is that it's not up to more than 20k. That's how he's saying, not even close.
Where's the rest? Yeah. So we do, so we're, we're, followers of Christ, we're Christians and we do believe in, believe in tithing. We put aside 20, 20% of our, um, a budget goes towards like tithing and giving.
Okay. How much are you investing? We have been, we have, we have three rentals. Okay.
One that we make a little bit of money on, but the other two, we just kind of make what the mortgage is on them. Okay. We rent, we're renting them to our friends and sounds like they're getting a deal and you're getting screwed. The money's in these rentals.
I think that if you really wanted to go through this fast, you could probably look at those and sell them and take some of the money and pay off the set, take all of the money and pay off the set and simplify your life. But I'm just not convinced that the behavior, because talking to you on this call, for me, I'm looking at this and going $45,000 a lot of money a month or $45,000 a month is a lot of money. Where is it? And you're having a hard time looking for it, which lets me know this is out of control.
Like this has gone off completely off the rails. You need every dollar budget. I want you to put in the cash to go online and get every dollar. You need to do that tonight with your wife.
You guys are going to be astounded at what you're spending money on. Pull up your bank statements to see and use that to fill in your every dollar budget for the month of May. And if it's not food, utilities, shelter, transportation, insurance, or minimum debt payments, it goes away, which means no more eating out, no more streaming. We're about to be living like we're poor because we are poor while making half a million dollars.
It's as insane as it sounds. We're rooting for you, Dustin. It's going to be a journey, but you'll clean it up fast if you do this stuff. Create your free every dollar budget today, the simplest way to budget for your life.