I Can't Afford My $1,200 Car Payment

The Ramsey Show Highlights

Ramsey Network

Self-improvement, Education, Investing, Business

4.6 • 682 Ratings

🗓️ 27 February 2025

⏱️ 8 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

📈 Are you on track with the Baby Steps? Get a Free Personalized Plan Did you miss the latest Ramsey Show episode? Don’t worry—we’ve got you covered! Get all the highlights you missed plus some of the best moments from the show. Watch entertaining calls, Dave Rants, guest interviews, and more! Next Steps 💵 Start your free budget today. Download the EveryDollar app! 🏘️ Free Tools & Resources to Reach Your Home Goals - https://ter.li/yib9sw 📞 Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET or click here! Listen to more from Ramsey Network 🎙️ The Ramsey Show 🧠 The Dr. John Delony Show 🍸 Smart Money Happy Hour 💡 The Rachel Cruze Show 💰 George Kamel 🪑 Front Row Seat with Ken Coleman 📈 EntreLeadership Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Brought you by Y-ReFi. Refinance your defaulted private student loans today at Y-refi.com slash Ramsey.
0:10.2	So I am 23 years old. I roughly have about 90,000 in debt.
0:18.3	47 of that is a car loan.
0:22.6	My payment per month is $1,200.
0:25.9	Okay.
0:27.7	When I bought the car, I was making roughly $150 per year.
0:33.3	Lost both those jobs, and now I make about $60 per year.
0:40.5	And I'm just wondering,
0:46.5	should I voluntarily surrender my car? Um, I really can't afford it anymore with, um, between rent and cost of living. Um, I have 47 on the car, about 37 in student loans and 6,000 on credit cards.
0:57.7	I did complete baby step number one, working on number two.
1:03.8	My mom also mentioned that she thinks I should file for bankruptcy.
1:09.1	I'm not sure if that's the best solution, but I just want to
1:12.3	get your guys' thought on that. No, on the bankruptcy. I'll just, I'll just say that, yeah,
1:19.6	first and foremost. We're not there. We're not even close. So there's some, some good news for you.
1:23.6	I think mom wants you to get a clean slate, and she's kind of wanting you to just shortcut this and be free from the pain.
1:30.0	But there's better options here. And so let's talk about the car. Instead of a voluntary, you know, repo, could you sell it and come up with the amount you're underwater on?
1:42.3	The car is only worth about 25.
1:45.3	Did you roll negative equity?
1:48.4	I might be able to, but...
1:51.2	No, did you?
1:52.5	From a previous car.
1:53.6	How do you owe 50 grand on the car's worth less than half of that?
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Ramsey Network, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Ramsey Network and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.