My husband and I are retired. I receive a small pension, and we are both on Medicare and Social Security. We have about $25,000 left to pay on our mortgage, along with a second mortgage of $18,000. These are our only debts. We also have a nest egg of $30,000 set aside, and a small annuity that’s worth about $20,000.
Dave Ramsey Says Taking on This Type of Debt Is ‘Like Trying to Bail Yourself Out of a Sinking Boat With a Bucket Full of Holes.’ Is He Right?
Is the finance guru off base on this issue?
Don't rule out this debt payoff strategy just because Dave Ramsey doesn't like it.
My wife and I have plans to enter the mission field as soon as we have paid off our debt and get a full emergency fund in place. We have only about $12,000 in credit card debt left, and we don’t own a home, but my father does not want this debt to stand in our way. He has offered to pay off the credit cards, and make it a loan where we would pay him back over time. It is a tempting offer, but we both feel strange about accepting it. What do you think we should do?
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I finished college a couple of years ago, and I have a good job making $65,000 a year. The only debt I have is about $5,000 remaining on a car loan, and I am paying that off as quickly as possible. At the same time, my mom and dad need repairs on their small house, and I am not sure they can afford to fix things. They both work hard, but they don’t make a lot of money. Plus, they have some debt. I have enough saved to pay for fixing their roof, with plenty left over. What do you think about the idea of pausing to pay off my car to help them? — Samantha.
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