Dave Says: Keep your dignity, and work your way out

Dear Dave,

My wife and I will both turn 30 next month. We have two young children, and we make a little over $85,000 combined. The problem is we have about $70,000 in debt. Some of it is credit card debt, but nearly $50,000 is in two car loans. Her mom and dad have offered to let us move in with them, so we can save up money and start getting a better handle on our finances, but we’re not sure how we feel about this. What’s your advice?

Justin

 

Dear Justin,

You’ve got a ridiculous amount of money wrapped up in those cars. I’d sell the stupid things, get into a couple of little beaters, and start living on a budget and paying down debt.

In your situation, the only scenario where I’d even consider taking the in-laws up on their offer is one where the stay is for a very short, agreed-upon period of time. They’d have to be absolutely wonderful people, too, and everyone involved would need to know their boundaries.

But you guys can get out of debt pretty fast if you’ll just lose the cars. You could even save a little money on the side while you were paying down debt, and buy a better car as soon as the debt was gone.

You might love your cars so much that you’re unwilling to make the sacrifice. Not me. I’d rather keep my dignity intact, and work my way out of the mess I created!

—Dave

 

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money MakeoverThe Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

Blogs

Sport Talk & BodyArmor Shine the Spotlight on Area Seniors

Sport Talk & BodyArmor Shine the Spotlight on Area Seniors

  Talk Radio 102.3, Sport Talk and BodyArmor want to spotlight amazing senior athletes from around the Tennessee Valley.  These kids deserve their spotlight and we are going to feature as many of them as we can on Sport Talk. Submit your athlete nomination now by e-mailing [email protected] Every Wednesday @ 4:30 and Friday re-play…

Radio Ranch Renovation

Radio Ranch Renovation

The famous Radio Ranch at 821 Pineville Road is growing and expanding calling for a much-needed Radio Ranch Renovation.  We are partnering with several great local Chattanooga businesses to complete our transformation.  From painting to flooring, drywall to electrical, and of course décor, the stations will be new and fresh in just a few months. …

Riverbend 2023

Riverbend 2023

Celebrating 40 years of riverbend Festival We are proud of our long-standing history in downtown Chattanooga. Riverbend started in 1982 at Ross’s Landing at a time when most of the buildings were boarded up, and few had reason to come to the riverfront. Riverbend ignited civic pride, stimulated business and civic leaders to rethink downtown,…