How Do I Pay Off Debt On A Single Income?

How Do I Pay Off Debt As A Single Mom?

Michelle is with us in atlanta hi michelle welcome to the ramsay show hello how are you better than i deserve what’s up wasn’t calling to ask the question today um i want to know how what is the best way to tackle a depth as a single mother of a 18 year old starting college in the fall and an annual income of 24 to 26 000 and a total depth of 56 thousand four

Hundred and six dollars wow what’s the 56 000 on that student loan car total and a loan how much is the car the car is 15 000 now okay all right wow um well you’ve been fighting this battle a long time hadn’t you kiddo i had yeah you raised that kid your whole his whole life by yourself i have you’re a princess warrior yeah you’re a rock star thank you so

Much so i’ll give you some mathematical observations and then we have to convert those to real life okay okay mathematical observation number one is if i woke up in your shoes i would be looking for what my next new career is because your income sucks right that’s not a shaming thing it’s i think you’re probably worth more than you’re getting paid especially if

You went and did something else that’s a not nice way of saying you don’t make much money don’t make enough money okay hard to make it on 25 000 bucks yes out there in today’s world okay what do you do i’m a dialysis technician okay so what could you do to gear up uh some further certifications maybe in the medical field that would increase your income almost

Immediately any ideas immediately i mean like if you took a six-month class at night by christmas you’d be making double or something i mean is there stuff like that out there i mean there is certifications in the healthcare field like um medical billing and coding no i’m talking about like moving up in what you do is a hands-on you assist in a medical procedure

Today and if you were assisting in a different medical procedure or further in depth with that procedure and made more i’d be happy with that if you like doing what you’re doing that is and i got a feeling you’ve been doing it a while uh two years and a lot of hospitals have you know go back and get your bachelor’s and we’ll pay for it but you owe us two years

Afterwards things like that that you could possibly pursue here right yeah okay so thing number one mathematically agree with me we’re gonna work on our income because that’s part of your equation there’s two parts of the equation the income and the outgo so if we get the income up some of this starts to solve itself doesn’t it like if you made fifty thousand

Instead of twenty five thousand uh no kidding right you kind of already knew that for you called me but you know my point is i think you need to be actively saying hey 10 years from today i want to be making 75 000 and here’s the five steps i’ve got to do to get there and doing whatever that is i don’t care and it’s something you like don’t do something you

Hate but i’m saying go make some more money number one number two the longer you are in 25 000 income range the more you have to look in the mirror and say i can’t afford a fifteen thousand dollar car when i make twenty five thousand dollars a year when you have in when you have items that are going down in value that you pay payments on cars uh anything with

A motor or wheels it it that are more than half your annual income it makes it very difficult in other words your car is a big part of your problem as a percentage of your income so if you made 75 000 i wouldn’t be worried about a 15 000 car debt we just knock it out but at 25 that’s some pretty heavy lifting you mean you got a you got a medium-sized hole and

A small shovel these are my math observations okay so you can do the stuff we teach right where you are but it’s just going to be very hard because you just making month to month has been hard for a long time that’s why i called you a warrior princess you’ve been fighting it i know what your budget looks like there’s no room in your budget yeah so we got to get

Your income up and your out go down and the more we do of each of those the more money we find to throw at getting rid of the debt and then throw at building wealth so that you retire with dignity so can we go to part can we go to part three now okay you got a kid heading into college right i do and for 18 years you’ve scratched and clawed and said this this

Generational stuff stops with me and my kids gonna have something better is that right right do not go sign a bunch of parent plus loans that you will never be able to pay back for some expensive school okay okay conversation that you all need to have right now about going to school is here is the financial reality of our world and whatever state we happen

To be in here’s what a community college looks like for two years and hear me say my mom went to community college and then went on to work at one of the biggest companies on the planet then got a phd and is now in her 70s still a professor so anybody who bags on community college doesn’t know what they’re talking about and you can do it for a fraction of the

Cost of of a larger institution i know this game because i worked in it for a long time and they look at moms and dads and say they will mortgage their souls for this picture of what this kid’s going to get and i’m telling you don’t do that this we’re breaking we’re breaking cycles here is that you hear what i’m saying yeah i want your kid to go to school if

College is in y’all’s future i want them to go i think college is great but i want you to go to a school that y’all can afford to he can work his way through community college for the first two years if it’s not free in your community in your state so if i load you up with a bunch of materials will you use them and learn about getting out of debt and getting

Them into school debt free i will use them i will use them i will use them okay because i’m gonna load you up as my gift because i think you’re a pretty impressive lady amazing so uh so here i’m gonna i want to sign you up for financial peace university for a year and it includes every dollar the world’s best budgeting app to help you manage your month money

And learn about money like you’ve never done before okay we’re gonna give you that i’m to send you a copy of ken coleman’s book from paycheck to purpose about how to get a better career going for you you got to read that okay i’m also going to send you a copy of one of our small books called debt free degree on how you can go to college debt free and let me tell

You we’ve studied the student loan mess that’s out there and we’ve studied it and studied it and we’re really on top of it and let me tell you a disturbing thing that we discovered regardless of race regardless of income the number one person that does unbelievably stupid stuff when they go to college is if their parents didn’t go to college to shu and didn’t

Know the way to show them where the landmines were and the parents instead go oh all college is wonderful because i wish i had gone in college college college college college and they mortgage their soul and they sign them up at some expensive thing where they’re paying 15 times what they should be paying for the same degree and they study the wrong stupid

Thing like get a degree in left-handed puppetry with a 250 000 worth of student loan debt from some stupid butt school that they should never been in the first place the number one person that does that is someone who didn’t have parents in college it’s not a shame on the parents that didn’t go to college they just don’t know the ropes and they don’t know where

All the land mines are and the kid wanders through and just land mines are going off everywhere and they wake up at 30 years old 200 000 in debt but by god they got a college degree which is freaking worthless uh because you know getting a degree in left-handed puppetry and medieval art is ridiculous you know and you can’t do squat with it you end up being a

Barista so that’s what you’ve got to avoid here all right hang on we’re going to send you all that stuff michelle and you call us back while you’re walking all this out we’ll help you with a career we’ll help you with the money we’ll help you with the kid going to school we’ll help you with every bit of it we actually know how to do all of those things you’re amazing

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How Do I Pay Off Debt On A Single Income? By The Ramsey Show – Highlights