Drain My $30,000 in Savings to Pay Off Debt?!

What a loser he makes 8,000 a month and he's he can't pay his bills.. pathetic!

Well the whole point to save is to be debt free right?

If my savings interest rate is 3.2% and student debt interest is 1.8%. Why would I pay off my student loan?

I have such a hard time letting go of my savings.

That’s how to get rid of debt. Use up ALL of your money. 😂.

Currently in this similar predicament. I have saved up $37k and my debt is $39112. Seeing all that money go is kinda weird but I just think of it as finally getting this debt out of my mind and living freely from here on out. This method is more unconventional to what the baby steps teach but no matter how you get there, just do it! It’s not how you start, it’s how you finish! 🤷🏾‍♂️✊🏾

$8k after taxes and deductions might be $6k a month. It could take a little longer based on his monthly living expenses like rent, food, utilities, but its definitely doable 👍

Man I love dave

He should probably leave 10k in the bank. He makes 8k a month so he's going to pay off the debt either way.

I own 10k and a car loan instead off paying the cart off I put the money into a dividend stock and everything month I take the money from the investing account. Is that I good idea?

Honestly I would pay the car off today and save up about 10k in a couple months then pay off student loans

Thanks 😊

Love you dave...but no way I'm leaving my savings at 1000. I've paid off 10k in debt and put 5k in savings...I've got roughly 15k in debt to go. 10k of which is a car note...I estimate that throwing 1.5k a month at it were clear in 10 months. 1k is nothing these days..I just had to pay $300 to fix my AC that hurt.

It sounds so simple when you're making 8k a month.

My butthole is itchy.

jesse took asmest on the comeptur today

Look at Dave and his chocolate twin!!! lol

1000? MMMM nah minimum 3k in the bank.

Unless our debts are paid, savings are just an illusion. That is what I am taking from baby steps.

Lol 10000 loan forgiveness couple months later

What if you have emergency above $1000 what do you do then

25 years ago, I drained my bank account down to $2000 to pay off my mortgage. $1000 was bit too risky for me and $2000 was worth a lot more 25 years ago. The reason I took the gamble is because I was single and my parent's were comfortable. They would help me out if an emergency happened. However, it did make feel a bit vulnerable. Fortunately, no emergency happened. My expenses significantly reduced and my income kept rising. My bank account quickly recovered.

It is hard to part ways with hard earned savings that took so much time to store up. Makes you feel insecure because it's nice knowing you have that money in the bank.

Dave gives the same advice but it's a psychological component of comfort when Dave reenforces what you should do.

Mentally, I get it. Emotionally it makes me sweat 😢.

It's amazing to me how people have such a good job to make good money and can't figure out their finances. Pitiful

As soon as I let my emergency fund slip to $1000, I’d have two major appliances break, the exhaust, rotors, and calipers go in my vehicle, and my furnace needing immediate replacement.

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family

i have 6550 left on my car i have 3000 in savings over 3000 in cd should i use that to pay off the debt or wait husband makes 1600 every 2 weeks

On a side note this man ain’t doing that. But he will pay off all his debt in due time. I was scared for him listening this. Sound sound advice from Dave. But man just having 1k as savings is a scary feeling lol

Another guy calling to brag how much he makes.

He aint gonna do it😂

NO!

The more I listen to Dave the more I think debt is the worse thing someone can do , it’s really
Not . Like what happens if he pays off his debt, has no savings and then something happens like his car breaks down and needs money to repair it .

8k a month?? I paid off 40k in debt on 2k a month

Keeping only $1000 in savings is dangerous to me. What if your car breaks down? What if you lose your job? What if you have a medical emergency? I have 10k in savings and that kind of barely makes me feel secure enough.

Not sure if anyone can give me advice in the comments on this but I’m 26, make 60k$ take home currently a year and have 9600$ in a car loan and a little under 25$k in student loans. My 31k$ high yield savings expires in October and I was debating on if I should roll it over or use some of it to pay off the car loan and student loan. The catch 21 with the student loans is that my company pays the minimum for me every month which covers my entire monthly payment owed so I owe nothing at the end of the month. I don’t plan on leaving my job anytime soon and it’s technically my longest line of credit since I didn’t open up an actual credit card til 2023. I def wanna pay off the car but I feel like I could just let my company pay my loans at least for now since it’s not really taking anything out of my paycheck and it’s a good write off. Only thing is I do get taxed the money that they pay toward it as if im making it from what i was told.

Thank you I had some credit card debt and luckily some savings.. so paid off credit cards and currently doing the envelope system… we should be good soon!

I don't get why people are reluctant to use "savings" to pay off money they already spent.

If he had no debt and no savings would he borrow $30,000 and put it in a 1% savings account?

He should keep 3-6 months of expenses saved and throw the rest at the debt
Keep $15k and throw $15k at the debt

These binary all or none things aren’t for everyone

Kid makes 8K a month BEFORE taxes. Saving 4K per month is unrealistic, unless he still lives w/ mommy/.daddy.

If you have 30k debt and 30k savings. The money in your saving is not yours

Imagine having the money in your account to pay off your student loans, but choosing not to. That's WILD. I'm surprised dave told him to pay off the car first. He's got enough equity in it where he could take it to a dealer and still come out with a little cash in his pocket. Give salliemae her eviction notice!!

people live off of 50k a year, lets say after tax he is making 7k a month, he can save 30 k in one year, then pay off that 7k in there, that year will be rough, but people live like that, as long as he lives cheap for that year I think he can be living the life, because with 65k you can live comfy , I say 65k bc he can put everything else in savings

How is this even a question,pay off the debt a keep a few thousand in the bank

I just needed to keep looking my to get an answer thanks yall

Debt: $36,000
Cash: $30,000

You could put $15,000 into an index fund that goes up 12% to 18% a year like $SPY and then try to negotiate with your debtors with a lump cash some.

Everyone will always negotiate.

This entire video was absolutely terrible advice and I feel sorry for this young man who called. Because in five years that $15,000 will be above +$30,000 and his debt would be paid off.

Wow that was sooo hard to figure out.

Josh is a loser. Don't pay your student loan lol.

I love how these people call in: “I make $200k a year and I need advice on how to pay off my debts.” It’s amazing they even know how to tie their own shoes.