I am listening online to the Dave Ramsey's show from Friday. I believe it is the third hour. This woman called asking for help with her $1.6 million in debt. She is in Michigan. House is worth $850K. Vacation home $150K. Other debt include $60K personal line of credit to try and sustain their lifestyle. Husband use to make $700K as a real estate broker. The market has caused his salary to drop yearly now at about $100K a year. The woman said she is having a hard time because they are use having a $30,000 a month budget :shock::shock: I cannot even imagine spending $30K a month. Goes to show for some there is never enough $ and stuff. Money has not made them happy.
I got a good idea sell the Michigan home use any extra money to get rid of the CC debt and live in the vacation home?
Dave's suggestions were to sell the house and cars but the lady's husband does not want to part with the house.
What people don't understand is that sometimes you have to take a step back BEFORE you take a step forward (HG's mommy used to say that all the time)
You'd be shocked at what people think they need to live off of. I used to work for very high-end people in a brokerage firm. ALL millionaires and billionaires. EVeryday I'd have to help people and listen to them whine about their money. I had one lady going through a divorce and whining tome b/c she didn't know how she'd only be able to live off of $10K a month alimony! I said come to my house and I'll show you---LOL. Seriously, that's what I told her. I think you can live off of much less than what society thinks is "enough." Coupon more, spend less--LOL. I agree w/ others on this post...sell the home and pay off the debt...duh. The husband is crazy NOT to do that. Stephanie--mom to 7
He is on 1030 AM Mon.-Fri. 3:00-5:00. You can listen to his entire three hour show each day at http://www.daveramsey.com/radio/home/index.cfm?strMode=listen
Most people a so stupid about money, finance, loans & debt. Just totally stupid. We live great on very little. We live within our MEANS. No debt -ever. That is just our way of life. We enjoy Dave's show and website. He knows his stuff.
That is what annoys me about the way we view CHRISTmas. Inevitably the news reports stories of Joe and Susie who spend way beyond their means on gifts and ten whine about it after the fact. Those stories just kill the Christmas buzz for me. I pay cash for Christmas, period. No cash, no gift.
That's why if we can't pay cash, we don't buy it. Early on, when we were young and stupid we charged things, no more. Paid all that off and now just have two monthly payments....1 house payment and 1 car payment. I pay extra on the car payment to pay it off, I hate having bills. Oh, and 1 braces payment for the oldest daughter...LOL
Dave Ramsey Rocks!! He has some great plans, I personally love to use the envelopes. That way I use CASH and NOT CC!!!
With how depressed the economy is in Michigan right now, she probably won't be able to sell the house easily-and probably at a great loss. Lots of people up there are in a lot of financial trouble. Many are moving away. It's definitely not the place to live right now.
So I've heard, I met a couple from Detroit just last weekend, and that was pretty much the case for them. Barely enough to covered what they'd owed. BUY AMERICAN! (cars!!)
