Transcript
Dave Ramsey (0:02)
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Caller (Rachel) (0:06)
Is it smart to do a balance transfer that is offering a 0% APR for 20 months to take care of a portion of a personal loan that my husband and I have?
Dave Ramsey (0:17)
A personal loan to who?
Caller (Rachel) (0:20)
It's with a Sofi loan that we have.
Dave Ramsey (0:23)
Oh, gross. What? How much is Sofi screwing you for?
Caller (Rachel) (0:29)
We have 15,000 left.
Dave Ramsey (0:31)
And what's the interest rate?
Caller (Rachel) (0:33)
12.31%.
Dave Ramsey (0:35)
Aren't they helpful? I know how they paid for that stadium now. Okay. 12%, huh? On 15,000. And what's your household income before taxes?
Caller (Rachel) (0:48)
112,000.
Dave Ramsey (0:49)
Okay, so how fast you're going to pay off the 15?
Caller (Rachel) (0:54)
Well, we would like to pay it off within a year and a half.
Dave Ramsey (0:58)
That's awful.
Chris Hogan (0:59)
Is there something ahead of it? Is that why it would take so long? Like, do you have other debts you're attacking first?
Caller (Rachel) (1:08)
We have. We still have a thousand left to pay off on a furniture that we brought. And then we also have a car loan. We have 18,000 left on that.
Chris Hogan (1:19)
Okay.
Caller (Rachel) (1:19)
And then starting back in July.
Chris Hogan (1:22)
I was going to say the car shouldn't come before the 15,000.
Caller (Rachel) (1:26)
Okay. Our payment is pretty high. Our payment is $679. Right.
Dave Ramsey (1:31)
So what we have learned is the fastest way to get out of debt. And the most sure way to get out of debt when it comes to everything but the house is to list your debts, smallest to largest, pay minimum payments on everything but the little one and attack the little one with a vengeance. And, and I mean, no eating out, I mean no vacations, I mean nothing scorched earth on your lifestyle. And you attack these debts. You make too much money to be this freaking broke. And if I'm you, I'm going to pay all of this off in just over a year.
