"We're Both Scared": This Couple With $1,000,000 Million Of Debt Asked How To Get Debt-Free, And People Are Shocked By The Clip (2024)

FAQs

What in the world this couple with $1,000,000 in debt calls into a finance show leaves everyone including the host speechless? ›

A 29-year-old woman called in to Dave Ramsey's show for advice on tackling a $1,000,000 debt she shared with her husband, leaving people speechless. – The caller: We have probably just under a million dollars in debt and we wanna know how to get debt-free without filing for bankruptcy. – Dave Ramsey: Okay.

Baby Step 2: Pay off Debt Using the Debt Snowball Method

The Snowball Method refers to paying the smallest debt first, then the next smallest – and on and on until you are living debt free.

How do billionaires live off loans? By pledging their appreciating assets as collateral, billionaires are able to live off their loans as long as their loan payments don't exceed their investment gains.

If you're motivated by saving as much money as possible down to the last penny, you'll probably prefer the “avalanche” method. On the other hand, if getting a quick win right off the bat encourages you to keep moving forward, then the “snowball” method will likely motivate you the most.

The truth about the debt snowball method is it's a motivational program that can work at eliminating debt, but it's going to cost you more money and time – sometimes a lot more money and a lot more time – than other debt relief options.

Step 1: List your debts from smallest to largest regardless of interest rate. Step 2: Make minimum payments on all your debts except the smallest. Step 3: Pay as much as possible on your smallest debt. Step 4: Repeat until each debt is paid in full.

Be wary of offers to buy lists of government grant programs. They are usually frauds. There is no government program for credit card debt relief. Legitimate debt settlement and relief programs operate by strict rules.

Does the government offer debt relief? ›

Unfortunately, there is no such thing as a government-sponsored program for credit card debt relief.

Perhaps the most common debts that cannot be discharged under any circ*mstances are child support, back taxes, and alimony. Here are some of the most common categories of non-dischargeable debt: Debts that you left off your bankruptcy petition, unless the creditor had knowledge of your filing.

You will normally have to convince a creditor that writing off the debt is in their best interest as well as in yours. Usually, this means showing them why there is no likelihood of them getting enough money back to make it worth pursuing you for the debt any longer.

If you owe money for most other debts like credit cards and medical bills, you (usually) did not sign a security agreement. So, the creditors cannot seize your home to pay the debt. But, if you want to sell your home and creditors have filed judgments for unpaid debts, you may need to pay those debts before the sale.

Rich people use debt to multiply returns on their capital through low interest loans and expanding their control of assets. With a big enough credit line their capital and assets are just securing loans to be used in investing and business.

The debt snowball method was popularized by financial expert Dave Ramsey as a way to pay off debt faster. It works by having you focus on paying off your smallest debts first, no matter their interest rate.

As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).