We’ve shared in the past that Mike used to have bad credit due to a foreclosure when he was 18 years old. Just this month (10 years later) it was removed from his credit report, so we thought it would be a good time to reflect on the pros and cons of building good credit.
Dave Ramsey is famously opposed to having any credit score whatsoever. We’re not so quick to jump on that bandwagon. Watch to find out when we think it’s a good idea to build credit, and when it’s not.
Appearance of Sh*t Together – https://goo.gl/HwlpzX
Car Payments are NOT OK – https://goo.gl/quksT0
Last week’s video about how to get out of debt was well received, but there were a few questions people had about paying off loans.
Most importantly, why should getting out of debt be your number one priority? In addition, we answer the questions:
1. What if I’m upside down on my car loan?
2. Would you stop investing while you paid debt?
3. What about debt consolidation loans?
How would we get out of debt if we woke up one day with student loans and a credit card balance? By taking extreme measures to cut spending and earn extra income.
We discuss everything from cutting up our (hypothetical) credit cards to selling our excess furniture and gadgets on craigslist. Although it’s easy to stand on the sidelines and say “that’s what I would do,” we hope this is a help to someone out there.
**Will be streaming LIVE on December 9 at 8:30PM EST!
Mike’s sister Jackie agreed to come on the air and talk about her finances and upcoming car purchase.
Podcast: Play in new window | Download
Warning: This is a rant about car loans. My sister Jackie has been told her whole life that having a car loan is a normal and acceptable. This video is me telling her it’s not OK to make car payments if you don’t have the money in the bank to pay cash for the car.
UPDATE: Jackie accepted the challenge! Mission accomplished. More to come.
UPDATE 2: Our friend Jim Collins liked this video so much he included it in his own MANIFESTO!! What an honor, thank you Jim. Check it out:
Disclaimer: I don’t mean car payments are never an option. If you have the cash to pay for a car and choose to invest it somewhere else that’s fine.
Here’s a video by Dave Ramsey that explains the “pay yourself car payments” a little more clearly: