Start Small and Keep Moving

**SPEAKER_1** (0:04)
Brought to you by the EveryDollar app. Start budgeting for free today.

**George Kamel** (0:14)
Normal is broken, common sense is weird. So we're here to help you transform your life. From the Ramsey Network and the FAIRWINDS Credit Union Studio, this is The Ramsey Show. I'm George Kamel, here with Dr. John Delony. Taking your call is at 888-825-5225.
That's how you get on the air and have a conversation about your life and your money. Joshua kicks us off in St. Louis. What's going on, Joshua?

**SPEAKER_3** (0:39)
Hey, thank you guys so much for having me on the show. I appreciate it.

**George Kamel** (0:42)
Absolutely.

**SPEAKER_3** (0:44)
So a little bit about what's going on is, it seems like we can't catch up financially.
So me and my fiancee, we have about $110,000 coming income. Then what is going on is, we have a house payment of $150,000 left between $150,000 and $180,000. We have two car payments, one is a mini-coupe and that is about $600 a month. And then we have a Chevy Colorado that is $738 a month. And it just seems like we are falling behind more than we are catching up.

**George Kamel** (1:26)
Yeah, those car payments will do it to you. And you said the mortgage balance is $150 to $180?

**SPEAKER_3** (1:32)
Yes.

**SPEAKER_5** (1:33)
What's the monthly payment?

**SPEAKER_3** (1:34)
The monthly payment is $1,500 a month.

**George Kamel** (1:38)
Okay, so as soon as the checks come in, you've got like $3,000 gone already.

**SPEAKER_3** (1:43)
Yes, yes.

**George Kamel** (1:44)
Okay. And have you guys combined finances? It's because the way you're talking, it sounds like you live together, your money is pulled together.

**SPEAKER_3** (1:52)
Everything is pulled together. We live with each other.

**SPEAKER_4** (1:56)
We have one bank account.

**SPEAKER_3** (1:59)
We both have 401Ks.
But after that, we have, I don't know where else to begin with my financial. This is all new to me.

**John Delony** (2:10)
We got you, man. You called the right place. We're probably going to tell you to sell the Mini Cooper at least, but I'm glad you called.

**George Kamel** (2:16)
John would have you sell it regardless of there being a loan on it.

**John Delony** (2:19)
Just the Mini Cooper on principle. The miniature truck I could be all right with.
But hey, but no shade. I drove a Prius for a long time. We're on the same team.

**George Kamel** (2:27)
But there is some truth to this. We got to figure out what these cars are worth compared to what is owed on them and see if it's worth selling these things.

**John Delony** (2:35)
And hey, this is like an important context for the call. Are you done with this?
And what I mean by that is, are you done with the stress?
And because here's the thing. You got two roads ahead of you. You can keep going the same road you're going on, drive the cars you want to drive, live in the house you want to live in. You're all making six figures, but you feel broke. You can keep doing that. And that's hard. Or you can have 24 months of challenging road with you and your wife. And y'all can be free. Either path is hard. But if you're done with this, then George will give you the path that will get you there guaranteed every single time it works, if people will just do it. Otherwise, we can just give you some principles and we can sing kumbaya and then call it.

**SPEAKER_3** (3:19)
Yes, I am completely done with it. I mean, it's getting to the point where I'm about to refinance our truck payment, we can get it down to-

**SPEAKER_7** (3:29)
No, no, no, no, don't do that.

**John Delony** (3:30)
Okay, we got you. We got you.

**George Kamel** (3:32)
If it has the word finance in it, let's just take that off the table.

**SPEAKER_3** (3:35)
Yes.

**George Kamel** (3:35)
How about that? Fair deal?

**SPEAKER_3** (3:37)
Okay. Can I explain it really quick?

**George Kamel** (3:41)
You can.

**SPEAKER_3** (3:42)
So to refinance, I am going through Ally and they have me at a 13.09% APR. Now, I was going to go to First Community Credit Union, and they offered me a 7.5% with adding on one more year.
But my payment, instead of 7.38%, it will go down to 4.38%.

**George Kamel** (4:05)
Well, the goal is to throw more at the debt, not have a lower payment.

**SPEAKER_3** (4:10)
Okay.

**George Kamel** (4:10)
Because if you could have a $100 payment, but that just means it's going to take even longer to pay it off, and even less is going to principle. So have you figured out what both cars are actually worth? You sold them private party?