(upbeat music) Brought to you by the EveryDollar app. Start budgeting for free today. Some of you don't like the advice, so what you're gonna find with the Ramsey Bunch, George, Jade included, is that we're here trying while you're sitting at home bitching. - An 86-year-old woman called in, and she was in a bad situation. She was making about 1200 bucks from Social Security, but her expenses are 1,500, and she's been using her credit card to cover the gap. So now she's in 30K of credit card debt. She has a paid-for home and a car and old Buick or something, that was worth probably nothing, a few grand. She's asking us for help, what does she do? So we were trying to lay out some suggestions for her of maybe downsizing in home to pay off the credit card debt. Maybe, she said she was working up until she was 80, and I said, could you do something part-time to cover the gap? - George told an 86-year-old woman to get a job. - When you say it that way, it hits differently. - No wonder you got hate. - Exactly. So I want to Dave's take on the clip. We're gonna, the team edited this down to about two minutes of our advice. I want to get Dave's- - All right, let's watch your edited version here. - Are you at the point where you can move in with your daughter? - I could, but I'm not too sure about that. You know, personality. - Well, the problem is, let's say if I stout my fingers and got you at a credit card debt, you're gonna be back in $30,000 of credit card debt because you're using the credit cards to float your life and expenses. Could you downgrade in house? If you sold it for $250, could you go buy a place for $200? - I could, but at 80 pictures, oh, I mean- - I know, but we also didn't set ourselves up for a bright future in retirement. God, George, so this is part of it, is we gotta deal with the ramifications. - I was a single mother, since I was 19 years old, with no child support, and I worked until I was almost 80. 'Cause there's something you could do to make a little bit of extra money right now. I think we might need to find a little part-time job to clean up this debt and increase our income. If you're able-bodied, it's not fun, but this might be your only option, other than selling the house and downgrading to an apartment that you pay cash for, which allows you to clean up the credit card debt, lowering your monthly expenses. - All right, well, I'm a genius. I've had it for 21 years, I don't really have a, I really don't have a energy level, I just have a dog. - And then he told her to sell the dog and sell the horse and sell the house and get a job. - Jay did offer that up to me. We need to re-home the dog. 'Cause it was costing her 200 bucks a month for the dog expenses. - And so, okay. - Let's get Papa Dave's take. - It would be, it's a lot of fun to make fun of y'all, but truthfully, here's the situation, okay? I mean, the poor lady, what a mess. Now, did I get the numbers right? That she's paying, just 1200 months coming in, but if she needs 1500, including paying her credit card payments. - I believe that included her minimum payment on the credit card. - I think it did, okay. I think, and when I watched the whole clip back, I think I saw that. So, basically, what she's doing is she's borrowing money on a credit card to pay the credit card, mathematically. 'Cause if she just didn't pay the credit card, she could barely eat by, correct? Like if she just ignored the credit card. - Sounds like it, at least she'd have less of a gap to cover. - Okay, yeah, so, (laughs) you told her to get a job. - She said she was working up until 86. She said she was able-bodied with a car and can drive. - You activated the entire troll network of Reddit. - I think Dave might be working at 86 doing something. - It's hilarious, I will be, but I don't have to be. But yeah, so here's the thing, okay, the problem is that she's stuck and y'all are fishing around, trying to figure out, and I would've been to, trying to figure out how to help her. I mean, 'cause there's no good answer in her story. There's no, like, magic bullet. - We don't sell magic wands here, people. We have to deal with the math. We have to deal with your reality and fax her your friends, not feelings. And so, I don't know about getting an extra job. That was kind of funny. - Well, that was before she told me about her health problems, to be fair. - I don't care, she's 86. - But, so, yeah, sell the house is one option. That's a good option, and pay off the credit card debt. Two is, don't pay the credit cards anymore. You're 86, just don't pay 'em. What are they gonna do? Sue you. What are they gonna do? Take a link on the house? They're gonna sell a house for credit card debt? No. So, you just default on the stupid things, is probably what I would do. And, or sell the house, move down and house and pay 'em off. One of the two. But, yeah, you know, I can't live with my daughter. I have a dog I can't afford. I have this I can't afford, I have that I can't afford, but I won't do anything about any of those. She was really not giving you all, you know, you're trying to help her and she really wasn't giving you, she's not willing to do anything. No, I can't live with my daughter. We have personality issues. No, I can't, you know, and I don't want to sell my dog. I love my dog and I don't want her to sell her dog. But, also don't want you to not be able to eat. So, prioritizing your budget when you're in that kind of a situation and say, "First thing we do is eat foods first." Lights and water second, house payment, or house. Property taxes, anything associated with shelters, third, transportation, if there is any fourth, clothing, you shouldn't need many clothes in a situation. And then you pay other bills. If you're out of money after you eat and pay your lights and water, you just don't pay the other bill. You don't pay the creditors until you figure out something to do to pay them. And that could be selling the house, it could be the kids chip in and start working with a credit card company, could be just let their cards go into the default. And now I'll be the cold one and let everybody pile on me too, 'cause that's what happens around here. But if you're 86 and you're a leukemia recovering patient, statistically, you know, four years would be a long time to live. And by then they're not gonna get around to doing anything if you just quit paying them. But cut up the credit cards and stop using them 'cause continuing to use them with a plan to not pay them and die in debt is going to, would be stealing. So you can't do that with integrity, but you could just stop paying them. They shouldn't have loaned an 86 year old broke person money. So that's what they get. You could just default on it. And you know, she dies with it. When she dies with it, the house will be sold and the credit cards will get paid before any money is distributed to her kid who she has personality issues with after being a single loaner. Now another option which we do, forgot to mention on air is having a housemate, someone who lives there, maybe a young college student who gives her 500 bucks for rent. How it'd be great. That could solve some of these problems, at least for her expensive loans. You saw that later though. That was that, yeah, we couldn't get to everything. - That's a better, that's better than the extra job I do. - I agree, I agree. In the moment, you know, I just spent about one. - I've done 30,000 hours of talk radio helping people. I mean, 30 years of doing this, more than 30,000 hours, I'm sorry, tens of, hundreds of thousands of hours. For 30 years, I've done this show five days a week, three hours a day. So the number of times I gave out advice that some of you didn't like is like every day. Some of you don't like the advice. So what you're gonna find with the Ramsey Bunch, George, Jade included, is that we're here trying while you're sitting at home bitching. So we're trying to help. And you just over there on the internet got an opinion. So good luck with your opinion, 'cause we're gonna keep trying over here. Do we get it right every time? Exactly, no. But we can laugh about it and go on and chill your butt out and go do something with your life people. - I heard you on my head saying, "You know, my grandma used to say "it was a great place to go when you broke to work." That's why I came from. - But I wasn't talking about grandma. - I heard grandma broke work. I put three and three together. That's where it came from. - Jesus is so bad. - Create your free every dollar budget today, the simplest way to budget for your life.
