Stop Making Excuses and Start Making Progress

George Kamel (0:31)

That's the only way to get on the air and have the conversation about your life and your money. James kicks us off in Nashville, Tennessee, just down the road. What's going on, James?

James (0:42)

How do you find motivation to start all over again when you spent over five years following the Ramsey Plan and then life comes along with a tragedy and throws you right back to step one when you're about to start step five? How do you ask your family to keep doing the same thing over and over again?

Jade Warshaw (0:59)

Oh, no. Well, James, I'm sorry.

What happened that caused you to go all the way from step five back to step one? That sounds terrible.

James (1:10)

Yeah, I was about to start step five. My wife lost her job unexpectedly about ten months ago. I was outside on the phone talking to her and a car swerved off the road and hit me. It was a hit and run and hurt me. So I was out of work for about seven months and then she was out of work too.

I went back to work at AMA a few months ago.

I'm back to work and she's back to work. But between the bills and while I was out, she went back into debt a little bit. Not too bad, but hospital bills now that I'm completely stuck with because of the hit and run. So how do I keep tightening the belt? I'm 52 years old and I've got $20,000 in my 401k. That's it.

Jade Warshaw (1:49)

Okay. Well, I hate that this happened. That is such a freak accident that you would be standing on the phone talking to her and a car would hit you. I mean, I hate that that happened. I'm so sorry.

You were out for seven months during that time. You guys ate through your emergency fund and then some. And so now you're starting back. Is it just the $20,000 of debt?

James (2:15)

That's not my debt. That's my 401k.

Jade Warshaw (2:16)

That's the 401k. Okay. How much debt?

James (2:18)

I thought the debt now we've got about 7,000 consumer debt when it was at zero.

Jade Warshaw (2:23)

Okay.

James (2:24)

Plus the last $60,000 in hospital bills that the insurance didn't pay for.

Jade Warshaw (2:30)

Okay.

George Kamel (2:30)

Why didn't they pay for it?

James (2:31)

My insurance. Because my insurance is not as good as some people's. They paid a percentage, but I'm still on the hook for 20%.

George Kamel (2:38)

And there was no max out of pocket?

James (2:42)

I don't know exactly what it is, to be honest with you, but it's somewhere in the neighborhood of 50k, the max out of pocket. It's not the best insurance in the world.

It's through an employer.

And like I said, I went back to work early. I wasn't supposed to, but I had to. Now, originally we was making, we got out of debt, I guess, was 162,000, something like that. And it's been about five years doing it. I talked to you once before last year, and I was close. I was talking to you about the National Debt Relief, dump them and pay it myself, and I did. Good. And I kept my car like you told me to do. You said I could afford it, my yellow jacket. But then a few months after that, I had all it paid off and was pounding the emergency fund. I was almost at 25K. And then this happened, and now we're right back to step one.

Jade Warshaw (3:25)

I'm so, so sorry.

James (3:27)

I mean, I only have $10, I think.

Jade Warshaw (3:30)

But you're back working. Are you back doing the same job that you were doing?

James (3:35)

Yes, I didn't lose my job.

SPEAKER_5 (3:36)

Okay, good.

James (3:37)

We were making about $135.

SPEAKER_5 (3:39)

Okay. What are you making now?

James (3:40)

About her job. Now, we're going to be making, I've got it wrote down.

With my overtime that I push and everything, and with her new job, which doesn't make as much, we're going to be about $111 with her job.

Jade Warshaw (3:53)

Okay. So the good news, I hear what you're saying and I, gosh, George and I are right there with you, but I really want to shift the conversation to what's going good. Because a lot of bad happened exactly.

And now the good news is you're back to work. The good news is you're back to your same job. You're making really good money. Your wife is back to work.

And it could be, it sounds like it could have been a lot worse. Like you said, you could have lost your life. There could have been more debt. But we're here now. And the good news is you've paid off $160,000 in debt before. We know you can tackle 67 And the truth is it's not going to be 67 because you're going to settle these hospital bills.