I love how Rachel can talk and Dave can't interrupt her, despite trying. 😅

Why do people think that each child needs a separate room? The sister & I that grew up sharing a room are the best of friends. Sure we fought and some times they were real doozies. But we had to learn how to get along, a skill that has served us well as adults.

I decided several weeks ago that I needed to make a drastic change so I’m selling my house and will use the equity to pay off my debt. I’ll rent until I get money saved up for emergency fund and for a house. I’ve reached my breaking point (tired of the debt)!

It’s all true about getting an inheritance to clean up debt but not changing the behavior that got you in debt in the 1st place (personal experience). 👉🏾 stupid life lesson was we went back into debt until we got 100% on board with the debt snowball plan. 👉🏾 Spent 2.5 yrs getting debt-free & we have not had credit cards nor debt in 20 yrs. Totally worth the sacrifices!

Rent in Tampa is insane right now. I'd have a real hard time selling and paying more on rent then a mortgage.

Maybe I am missing something, but I don't like the idea of being a renter to try to solve this issue. Seems like it would be better to stay in the current house and go "scorched earth" until they can pay the debt down. If they decide to sell the house, then rent something, how are they going to be able to save up for a house? The rent will most likely be more than their current mortgage.

We used a "silver bullet'" to be completely debt free including mortgage and we changed our behavior because we DON'T want to go back into debt.

My new job brings me about 3k a month after gov steals their share. So about 4-5 months and I'm done with this crap. I don't even want a mortgage. I don't want to owe anybody anything ever again.

TECO Tampas power company have sent out insane power bills lately. Bigger house bigger bills.

💯 changing the habits first . Or end up in the same situation again and again. Unfortunately ,until you change your mindset nothing is resolved and out of control and out of money .Truth.

Forgot to ask what the $83,000 of debt represents. Is it huge vehicle debt that should be dealt with quickly? Glad they will get FPU to guide them. Good warning that "getting out" from the burdens needs to be a short-term sacrifice.

No! Absolutely do Not sell the house right now! What's the debt on? These people need to change their behavior and learn how to make the house work while they have to Personally Commit to the lifestyle changes needed to actually be successful now and in the future!

Just build another bedroom and bathroom. That's cheaper than what they want to do. There, problem solved. Time for next caller.

As a landlord in Tampa, I can personally tell you rentals bigger than 1 bedroom right now is through the roof. A normal sized house in a decent neighborhood, you're looking at atleast 2500/month for the base rent

I've been a renter. Was not able to save anything! Being in debt to a mortgage is, to me, a blessing. My friend was renting, couldn't pay his garage rent, had to park on the street, always moving vehicles (car and camper truck), couldn't afford to eat at McDonald's! After years, when he couldn't pay the rent anymore, (used up all his lump sum retirement), he finally listened to me, checked into purchasing a house. His mortgage was $300+ less than his rent! They were able to enjoy life again. Eat out once a week, got a little pet dog. And he agrees that mowing your own lawn is worth having a mortgage! Equity is always increasing, not disappearing. Mucho betterito!!

I have a friend in Tampa and the rents are insane and keep going higher. I would prefer a 2/1 current mortgage, and sleep the kids in bunk beds in order to pay off the debt.

The main thing he has to worry about in this process is not getting a divorce. A divorce at this moment will kill everything and ruin the family. So ladies will think it's the best option for them to escape the madness. If the relationship is rocky in a home it becomes 5X more rocky in an apartment. You have to convince her to stay the course.

I grew up poor with 4 brothers and shared a room with all of them. Whilst it didn’t do me any harm it is not a great experience as a child and teenager to not have any of your own space. I think this guy is looking for the quick fix but I think he should try attacking the debt before he makes a move like selling up. There is no way he will get a bigger house with their income without the 130k in equity. That is also taking into account the higher rate he will be paying.

Sounds like he just wants to move his current debt and the debt from a bigger house into a more socially acceptable mortgage. It is still more debt whatever he wants to call the loan.

Just like working out, to win financially you have to be consistent

Rent is going up by 20% every year in Florida. Mortgage payments are going up by less than 10% every year in Florida. Renting in Florida is a trap when someone owns a house.

Heck, I live in Tampabay area and it is a bad idea. We have a homeowners tax exemption that he will lose if he sells the house. When he rents a home 3/2 or 4/3 he will be renting a home from a person who does not have the tax exemption and will be paying way more than he probably does now.

You need to check the rentals before making this step.. if rents are high then just stay here . Make the sacrifices for a season

Title already got me 😂

This is a terrible idea in Tampa right now. Unless he is planning to move to another state, his rent will be way higher for the same type of house. And if he tries to purchase something else will be even worse, unless he can time the market and we finally see a housing crash that is already overdue. In my neighborhood people are trying to sell the house they bought with a 3% interest rate 3 years ago for a profit of 50% or even 100% in the current situation where interest rates are 7%. In 2 years the rent in Tamp has gone up 60%, so in my personal opinion, we are in a super bubble but is not popping up. My household income is double of this caller and I don't want to purchase any house in the current market. Some correction in price is needed in the Tampa Bay area.

Oh look Dave is getting better at not interrupting

Reminds me of people who file bankruptcy to become debt free only to pile on debt again.

"Like asking a dog if it is hungry" 😅

We grew up as a family of 6 in a one bathroom house. I knew that I had to get up early in the morning in order to shower before my father got up...or I wouldn't have a morning shower because by the time he finished, I didn't have time for the bathroom before I had to leave for school. THe alternative would have been to shower the night before. 3 bedrooms. The idea that kids need their own rooms or own bathrooms is a very modern thing--people used to live with 4 or more kids in a bedroom. You don't need a bigger house to give each kid a bedroom. Is 2 bedrooms and one bathroom easy with 3 kids as in this caller's situation...no. But it is it worthwhile for a "season" to get to where they need to be? Definitely. Can they find ways to bring in more money? Likely.

They will never get another home in the current climate. What about saving up for an addition?

What if they just deal with the current house for a couple years and really buckle down and pay off the debt. Then look to move up in house.

More then likely, rent will be more then their mortgage. I would not sell. Until they already bought a bigger house. They need at least 4 bedrooms.

If either one of of us suggested a cruise (other than perhaps the QM II) we'd get divorced.

"Renters pay their landlord's mortgage" maybe rental makes sense if you don't intend to stay in the area more than a few years,otherwise as above

Love to know what logical steps this guy went with when he decide to have a third child with a two bed house....like wrap it up dude or cut it off.

I disagree. Rent is usually higher than mortgages these days or at minimum, about the same! Cut up your credit cards. Pay them down via snowball effect. Don't pay landlord's equity. Pay your own. One of you need to get a second job to pay down your debt, each week!

This is the most hardcore I've seen Rachael! Kick butt!

I'm not sure about their plan. I mean on paper I get why it's attractive. I just feel like they could easily fall back into a spending lifestyle creep situation. Because they've never really spent any time developing the intentionality with budgeting and all of that. You are pushing fast forward on the debt snowball short but then you are also giving up the ability to gain equity in a home And if you're trying to move up in home it's probably going to take you quite a while to save up that large down payment with a rent that's going to be more than your current mortgage So they're going to wind up renting for a long time and I can see where in the midst of all of that things can wind up working out worse than the anticipated

Sell the house make bank move to another state thats cheaper with better schools. Florida schools are horrendous they had to do away w standardized testing and read at an 8th grade level when they graduate.

…to expect sleepy Joe to write off your Student Loan(s)… how’s that working out ..lol…

Whatever happened to Khristina Ellis

I never wanna hear Rachel say she grew up middle class again after this. Private school toddler

You know her she was given a house but it it

So many different angles to this... Are their 3 kids all the same sex? If so, no need to move up in shelter ASAP. Make it work, even if that means that mom & dad move into the kids' bedroom (and the kids takeover the master bed). Otherwise, if they have both boys & girls, they should look at rearranging the living space they have to make it work. If the space works to do it, that might mean converting the living room, dining room, den, or even a large (80+sf) walk-in closet or laundry room into a 3rd bedroom. Or maybe they can add a sleeping loft if they have cathedral ceilings. Without knowing what the house was bought for and what it's worth now, they say they have $130K in equity. Assuming it sells for $200K, a 3% agent commission costs them $6,000, they have $83K in debt, so they'd be able to walk away with about $40K. Their current mortgage is probably 3% or so, with a lot more equity to debt. Let's say they buy a new house is $250K and they scrounge together a $50K downpayment, they now have a mortgage for $200K at 6%+. They're starting over with basically 20% equity, with a P&I payment of $1200/mo for 30 years (whereas the same mortgage 3 years ago would have had a P&I of about $850/mo). Now right now they're feeling stuck and rightly so. But walking away to find a 3/1 or something won't make things better. They'll have stability for 1 year, maybe 2 if that's their lease agreement, but are wholly at the mercy of their landlord and market conditions. A cheap 3/1 will rent for about $1500/mo in Tampa, so I don't see the savings there. I'd make the argument that maybe they take the $120K and, instead of paying off the debt, try to find a more adequate house to buy with less mortgage than they currently have in that budget. Excluding mobile homes, the cheapest I can find without an HOA fee is in the $2xx's so I don't see how that'd work for them. If they mostly work remotely or something, maybe they can expand their options to being a longer distance from work. The first priority is probably to clean up the debt from hard work. They make $80K, can probably live on $35K, and can probably throw $20K+ to cut the debt this year. 5 years to clean it up that way. Try and make the current house work, since that's probably giving them lower monthly expenses then moving. Now if the 2/1 they own was worth $500K or something and they're paying a $350K+ mortgage with that, then they should move ASAP to downsize the mortgage payment and find a larger & less expensive home elsewhere. They could have bought a waterfront house or something else insane, so then there's opportunities to save real money and cleanup their debt situation at the same time.

Rent where?

you can't go "dave-ish". either you follow the smart people's plan or you don't. there's no middle ground.

good idea from ramsey

Husband is broke but wife still gets pregnant? What world do these people live in?

I wanna know how he’s got so much equity only owing the home three years 🤨

Was trying to say and then below comment is this woman was giving a house when you know she was giving it and where is her parents died she would just automatically own the house now she's in her mid-seventies she drinks too way too much and she doesn't manage her life and yet she was given this house and the pipes are ruined should have the water turned off so she's had no running water for years and years but yet to look at her talk to her she would say she's just fine so you know definitely inheritance isn't always a good thing

Last night I decided to go into debt. I'm tired of being debt-free.

A 2/1? Try a bit of English. Especially after she asks for clarification, dude!

The first thing these people need to do is move out of florida. I cant even imagine what they are paying for home insurance, car insurance, and home costs.

Build habits, don't set goals. If you want green grass to grow, create the environment where green grass thrives.

Who said two one? Lol

✝️🙏

Can we just have Dave do the show by himself? Everyone else is just annoying.

Rachel is so gorgeous!

I really hate how evangelicals always use the word "season" when talking about being in what they perceive to be a shitty spot in life.

I’m the first viewer!!

first comment

Most of my life since i was able to work at age 15. With working papers on the books i can’t remember since i have not saved. I have always saved my money. Main reason why i save i grown up in a family that was and still always broke. I was blessed to have what little food we had on the table. The clothes i had on my body and the roof we had over us. I took nothing for granted. I have always saved waay more then i needed to because I simply did not want to be broke. If i wanted something i asked myself my brain do i need this now. And if not i would wait or simple never but it. This is not something u do over night i have been teaching myself the way to save since I was 15 like I said I’m now 33 and I tell you right now discipline in teaching yourself how to save and invest is the most important thing you should do for your whole life you can have the best job in the world with the best income but if you don’t save or invest any of that money, it is worthless that value is so bad for you to do to your mind your future and your future goals and it will mess up your family tree. If you have any children or your brothers and sisters have their own children, will still mess it up because they are coexist to each other. always save and always invest what you can. It’s baby steps like Dave Ramsey has said even before Dave Ramsey said these things I’ve always told myself it’s baby steps and I didn’t know Dave Ramsey for 33 years of my life. I’ve only known him maybe shy of 10 watching him on this, KZfaq, it’s really all up to you though here’s an easy way to say there’s 52 weeks in a year if you put $100 away in a high-yield savings account did this for 52 weeks you’ll have $5200 give or take the interest you make off of that depending on what the interest is per year do that phrase Everlong you like but if you did that for at least five years you have close to $30,000 maybe more but it’s the principle that got you there