‘No wiggle room!’ Dave Ramsey suggests how woman, 70, with ‘no retirement’ can get by

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On The Ramsey Show – Highlights YouTube channel, Janice called in to speak to the American personal finance personality. She expressed her concerns as she was running out of money and options.

Janice said she was “very concerned” about her finances. At 70 years old, with “no retirement,” she feared she would have to downsize her home to survive.

She said: “My husband and I, neither one of us have a retirement. We are not in agreement about what we should do with the cash that we do have.”

They have $25,000 cash (around £20,000).

The value of their home is $250,000 (around £207,000) and they still owe $27,000 (around £22,000) on it.

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They also have $11,000 (around £9,000) in car payments.

Janice said: “I’m so stressed, I at least want a house to live in.

“I don’t think I can live anywhere cheaper than where I live right now. I don’t even think we can live in an apartment.”

They have pensions worth $2,000 (around £1,500) coming in each month combined.

Janice also works as a cleaner and gets another $2,000 (around £1,500) a month with that job.

Her husband has a part time shop working at a grocery store.

She explained that over time her husband and her have made some bad cash investments as well having to pay a lot of medical bills.

They couple have three cars – one which could sell for $10,000 (around £8,000).

Mr Ramsey suggested that they sell that car and use that money to pay off their existing car debt.

He also said that they should use $10,000 (around £8,000) towards the house, and leave $15,000 (around £12,000) in their emergency fund.

This will leave $17,000 (around £14,000) left on their house payment which they can focus on after.

He said: “You guys get in the business for the next 17 months or so of getting that house paid off.

“Because with no debt at all you can make it.

“It’s not going to be pretty but you can make it.”

Janice explained to the money expert that they barely spend any money – all they do is occasionally eat out.

However he stressed that if they want to keep the house they have to start living like they are “completely bankrupt”.

He continued: “You’ve got to clean this mess up. You do not have wiggle room here.

“That’s where all this stress is coming from and why you called me so you can’t eat out, you’re broke.

“Eating out is causing you to clean toilets, I’m sorry.”

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