Im Drowning In Student Loan Debt!

I’m Drowning In Student Loan Debt!

Kelly is with us in baltimore maryland hi kelly welcome to the ramsey show hi oh my gosh it’s such an honor thank you for having me our honor too how can we help i am drowning in student loan debt um i have three hundred thousand dollars on student loans oh honey yes what’s your degree in are you a lawyer or a doctor a lawyer okay that’s good news i hope

I hope you got a good lawyer job you didn’t take a work take a job with a state or something the government federal government why uh work-life balance so uh work-life balance you got 300 000 in debt i know i did have a mental health breakdown back in 2018 and that pr i couldn’t find a job so the government was the first one that came up at the end of 2019

And then the pandemic hit yeah how much i pay in you uh my gross is nine thousand eight hundred thirty four okay how long you’ve been in law school uh twenty fifteen how are you doing with your mental health uh better i see a therapist bi-weekly um that’s a part of my my my budget is that i have to pay my co-pay for my therapist um and i see the psychiatrist

Quarterly so then i take medication good investment good investment well done thank you sounds like you’re doing better i am much better and um realizing that i gotta get a hold of all of this my wife i’m not married but i still am with my children’s father okay how many kids do you have three what age sixteen seven going on eight and four going on five

All right um well you gotta you got a mountain to climb here and so we got to get our climbing gear out and uh the hole that you’re in is 300 000 the shovel that you have is 90 000. right yes your income we call it the shovel to hole ratio your income versus the amount of debt you got to climb through and so i start going okay out of 89 out of 90 000 how quick

Can i pay off 300 or if i pound 30 a year that’s 10 years that doesn’t work yes too long i even tried to work some things out and i’m like it’s still too long it was like five magic like six years and i was like that’s like five thousand more months and i’m like i don’t know i do uh try to work on the side i need to um i do uh probate and some estate planning

But it’s just been slow going only 500 there 500 there so now that things are settled a bit after 2018 and the pandemic and everything are you open to finding a different job that maybe pays a bit more um i did not think of it no i didn’t i am open but i did not think of that yeah okay because you you need to you could probably make 160 you probably double your

Income 170 if you got out there in private practice um and i mean it might take a little bit of time to get there but you’re not going to get there in the job you’re in and you need a bigger shovel mathematically the arithmetic tells us that because if you could put um 80 on this you’d be done in three or four years but you can’t put 80 on it when you make

90. you can when you make 180. and yeah there’s going to be some work-life balance but i’m going to go with some work-life balance uh like that mom’s going to work because mom has a mess and uh i’ll see you in about three years well especially if you make that shovel bigger then it’s less about side hustling and working 80 or 90 hours it might be at a new law

Firm a private law firm they might put her in there that’s true and lock her on the fifth floor not let her out but um but at least you’ll have the the income there like your salary will be a lot stronger than what it is currently here the probability of you getting this mess cleaned up increases the more you can shorten how long the pain is going to be and

So i i for your sake i i think you’ve got to reconsider how you can go make double what you make or you know uh almost double what you make and throw it all throw all the difference at it because i mean does it not sound pretty appealing to be out of debt in three or four years yes i mean i would give up i would give up a lot of stuff to do that i’d give up a

Lot of a sacrifice to do that when we started this company i worked my kids were your kids age or younger and for three years my wife will tell you she was virtually a single mom when we started this company but if you work like no one else later you get to work like no one else and if you live like no one else later you get to live like no one else and here’s

The thing the the amount of time that human beings in america waste in front of the television will really cause you to prosper alone and you don’t you can’t call work sitting in front of the television work life balance because children aren’t getting anything out of that except watching mom and dad zone out watching netflix and tiger king and so um you know

I i i don’t recommend working 80 hours a week and never seeing your children as a way of life but for a short period of time to get some kind of a needle to move yeah hard work never killed anybody right before you die you pass out if you’re working hard so you’re not going to die from it well good job having the courage to call you’ve been through you’ve been

Through a lot yeah that’s that’s and you have a huge mountain ahead but we have seen people pay off three hundred thousand dollars in debt here’s the thing the looming monster that’s thirty thousand pounds three hundred thousand pound monster here three hundred thousand dollar monster there’s a stress and a weight to that that dr john deloney you know our

Resident psychologist says your body feels that weight it affects your mental health and so for you to continue the healing you have to see a way out of that instead of seeing that as this endless rock you have to push up the hill as in greek mythology right and so uh you know you push the rock up the hill and you get to keep pushing it up the hill for the

Rest of your life that there’s that the weight of that hopelessness affects your mental health it affects literally your physical body feels that as a from a mental health perspective your physiological reactions to the debt and so um you know you even if the news is hard hope that it’s going to be over soon i can deal with the hard news right yeah the human

Being human mind can be a psyche can deal so my point is it’s going to help your mental health to have a plan that gets you out right yeah the idea of carrying around 300 000 in student loan debt for the rest of your life that sounds terrifying i think anybody would feel that pit in their stomach and just such a just a rough feeling feeling like that monster is

Chasing you and it’s right there all the time but yes there is hope this is scary right now but you can tackle this you can tackle this mountain as hard as it is i think especially given the career that you’re in given that you can get a bigger shovel and really attack this i understand how you got to the career and i’m not shaming you for that i would tell you

Not to stay there though because i think it’s good for you good for your finances good for your kids good for your mental health good for your career for you to go make a big pile of money and get this mess behind you yes and so that that’s why i’m saying all of this it’s not just to get you out of debt because there’s so much more to this picture and uh but

It’s uh uh the number of families that we have had with small children that both spouses the kids ended up at grandma’s half the time because they were hustle grind they’re working two three four jobs and 18 24 36 months later they’ve cleared all the debt now they can work 40-hour jobs the rest of their life and become very very wealthy and the kids are not

Harmed by that because it’s not a permanent way of life we’re not working for the wrong reasons we’re working for a short period of time with intensity with gazelle intensity for focus get it knocked out that does not harm your children no and those are the best debt-free screams when we hear them in here just yelling at the top of their lungs that they did it

It is so powerful and we hope to see you here kelly in a few years amen

Transcribed from video
I'm Drowning In Student Loan Debt! By The Ramsey Show – Highlights