I'm $110,000 In Credit Card Debt! Should I File For Bankruptcy?

This is mind boggling. Who is dishing out credit like this.

Keep the house

Why can't he sell his house and move into the one he is flipping?

Poor guy. I wonder how he went over the last year.

I’m surprised Dave’s only solution is the Debt Snowball…
With today’s insanely high interest rates I suggest negotiating lower rates/ payments.

I feel like these people are always lying about something

how stupid do you have to be to live on credit cards. what crazy APR is that? So finance bread milk and eggs ?? Id live in a van before I'd finance eggs.

This channel is hard to watch sometimes people make bad choices especially when young,guess I was lucky my father was a CFP.But seems common sense is rare when it comes to money.

Why not file bankruptcy?

In Massachusetts, if you have a homestead, we are covered up to $500k in equity. If no homestead, equity is covered up to $190k. Varies wildly by state. Sometimes, bankruptcy is the best option for some.

He should put emotions aside, sell their house and payoff all debts from that equity. Keep the flipper house in the meantime and live in it for a couple of years until ready to buy a new house. Use as down payment all the leftover equity from both houses. Problem solved.

Good guy Dave. That guy is under some serious stress.

Credit Card 💳
Debt is no joke but if you honestly focus on it you will pay it off

Why not to sell the house and move into the house being renovated or rent for a while? Yeah it’s hard but you set yourself free from the debt.

Who needs a 500k house?

It’s easy for you to say pay off the credit cards and sell your home .. it’s the dumbest advice you can give, do you know what rent goes for in NY and NJ ? $3000 to live in a ghetto neighborhood, it’s cheaper to pay the mortgage.. the best thing is file bankruptcy only once and you will not lose your home, within 6 months you can start building your credit again , you might not be eligible for a mortgage for 10 years but who cares if you still own your home.. I know plenty of people that filed bankruptcy and kept their homes.. the goal is not to screw up again,, you are telling people to sell their homes and pay down their credit cards .. what’s going happening to people that can’t afford paying rent that doubled just in 2 years alone..? explain how can someone pay a $3k rent in the ghetto and credit cards ? In the end that person has no choice but to file bankruptcy or the courts will garnish their pay. You are not helping with your advice, you think that rent is cheap and you think it’s easy to find a better job.. talk is cheap.. bankruptcy is the way to go, nobody cares about their credit they don’t want the debt anymore.. everyone knows the consequences.. yes sell your home, pay your credit cards and move to Indiana or some other cowboy town.. 1 thing I agree with you, having a car loan will drive you to financial problems but you need to understand you can’t find a $1k car to go to work, people need vehicles for work and shopping, nobody needs a BMW to go to work but buy a new cheap car just to get you from point A to point B .. a used car in the tri state area will cost you $13k with 150k miles, you are better off buying a new car with a payment no more than $200 .. the problem is not the car payment it’s the insurance .. a vehicle is not a luxury anymore but if you buy an $80k car then you are a fool .. I don’t know where you live , try to live in NY and NJ.. I guarantee you will soon realize that your knowledge is worthless . Try to find a job with your background in my area and start from scratch and let’s see how far you get

Anyone else listen to Dave to feel better about your financial choices? 😂

Why sell when you can take out a HELOC?

I know it's not inline with the Ramsey way, but take out a HELOC to pay off the Credit cards. The HELOC is going to be much lower interest rate than the credit cards

Is Dave paid by credit card companies?

Sell the main house and move into the flip. Your wife will love that

Yes declare bankruptcy get your fresh start and no more cc for you

I have a neighbor who bought a house across the street last year for $1.4 million. It has the same floor plan as mine. They have been having problems since they moved in. Even before they moved in, they waited 2 months to get the house done. New roof, new paint and repaving the pool. Now they are having problems with pipes in all three bathrooms. The house is forty years old. I think they were better off buying a new house for that much money.

Tell Dave stop cutting off his guest sitting next to him, its rude an annoying

If you failed flipping houses during covid you’re bad at flipping houses.

Apollo Beach!

Sell the house pay off debt and downsize easy

He's forgetting the fact taxes and interest exist. Interest on credit cards has gone up to 27 percent, that's about 300k total if you pay 2500 a month. Interest will outrun his income. Guarantee he's filed for bankruptcy by now

I dont see anywhere in comments to sell his primary home cash out, and MOVE INTO HIS FLIP HOME HE OWNS.. pay all CC and loans maybe even pay outstanding mortgage on the flip...save for couple of years, move into a nicer home

If I was in 110k of credit carded debt I’d for sure file bankruptcy

What did Dave mean by paying the credit cards late for 3 years? Which plan is this? How does it work?

Nothing I hate more than amateur house flippers. They do crap work and the homes end up looking terrible.

I wouldn't feel confident flipping houses in today's market unless I get the house for a dirt cheap price (which is really hard). Currently the vast majority of home prices in America are inflated, and what goes up, not all but in a lot of cases eventually come down.

Sweat equity in a house you built new 18 years ago? What? That just means you’re maintaining your house.

Getting advice from a man who filed bankruptcy

During the last recession, I found myself deep in credit card debt, and a friend offered to pay for a "lawyer" to help me negotiate bankruptcy or something similar. Before I ran into this problem I was never late on a payment and had a high limit and low interest rate. My health insurance company took an unauthorized payment and my house of credit cards fell down. The interest rates went from 10% to 25%! and my payments went through the roof. I called one of the tv lawyers and apparently, I caught them on a bad day and he literally told me off when I was trying to explain to him why I needed a consultation. I hung up the phone and when I got over my butt hurt and thought about what I was asking him to do. It was to stop the phone calls, stop the collections threats, stop telling me to borrow from somewhere else to pay them, and stop the hassle,. So I thought I would do what I was asking Mr. Lawyer to do and talk with my creditors. I did and I negotiated to stop the interest and arranged a payment plan. All I had to do was agree to cut up their cards and not use their services, which is pretty much all a lawyer could do for me. It took me 5 years of part-time jobs. Never again.

Interesting showing an Eastern Motors commercial before a Dave Ramsey video lol

Why not do a cash out refi on the house, pay off the cards, then put all of the payments he was once making on the cards toward additional principle payments each month to get the mortgage paid down faster?

It's not the or four years. It's at least six. 30% interest in the credit cards.

He's screwed to work for ten years as hard as he can to not have a house payment at retirement.

This is why you NEVER GET IN THIS POSITION IN THE FIRST PLACE.

this dude needs to file for bankruptcy its there for a reason

I was in similar situation with $65k in debt with three credit cards. I stop paying and before the 180 days all three were willing to settle for 30 cents to a dollar but I had to pay the 30% in full. In the beginning they woudn't negotiate too much and lot of threats but I just kept telling them i don't have the money. Most all the credit card co. will settle before they sell to collection agency which they get like 10 cents to a dollar. Most will settle for 30 cents before they sell to collection agency. Key is you have to have 30% cash ready and get written promise that they will be paid in full. So I ended up paying approx. $22k and it was over. Discover was pain in the butt, they didn't settle until the very end of 180 days. Chase was easy. I did all this by my self, you don't need agency to help you. My credit got dinged for about one year but after a year it want back to 700 plus with all my balance showing ZERO in the credit report and it didn't go to collection agency plus I had written letters from them that the balance was ZERO.

Can I stop paying my credit card and after many letters/phone calls, at some point can you call them up and say, look I have X amount of money I can give you this to clear the debt ? thanks for any info and the video

Dave always forgets about the high interest on this debt, and taxes on income. He needs to shift this debt to a lower interest rate loan along with the other advice

Debt consolidation

Dave is nuts. The guy needs to sell HIS house AND the flip and pay off the CC debt with the proceeds, or cash-out refi the private residence and continue to pay down the card balance while he grapples with a higher mortgage payment. That would be the fastest and cheapest way out of this financial hell, upgraded to a financial disaster until he can get ahold of his house payment.

If he doesn't come up with cheaper money to pay off the CC debt, he's going to pay 20-25% interest on those cards for as long as it takes him to pay it off. That's going to add thousands more to the card. If it takes him 3 years to pay $110k in debt with 20% interest, he will have paid $37k in interest. That's ON TOP OF THE $110k, making his total payoff $147k.

He'll either pay extra in mortgage interest for a refi, or extra in commissions/fees for a sale, plus the loss of future equity from renting in the interim, but either would be better than the credit card interest, which isn't even tax-deductible for the personal cards.

Ok I live in North Carolina. I owe 60000 in credit card debt. I was once hourly then went to salary. My three major credit cards interest went to 26 percent. So one I couldn't pay. I can't get a loan to pay them off due to debt ratio.I was paying my dead sister bills on credit cards. Enrollment to Freedom Debt relief. Now scared because one credit card company called my job.

Jeff didn't want to hear what Dave told him.....Jeff wanted Dave to tell him he could get his debt wiped to zero without any consequences.
Pay your bills Jeff....we don't want to pay them for you.

Dave: "Sorry to say this but you're going to have to sell your house".

60 seconds later....

Dave: "If it was me I would fight like a wildman to not have to sell my house!".