I Just Discovered We're $172,000 In Debt!

[Music] brought to you by the Every Dollar app. Start budgeting for free today. >> So, recently I found out this past weekend how much we actually have in debt with credit cards and a personal loan. >> Um, recently just started watching your stuff and I we had not been doing finances together. He pays some, I pay some, but after learning a little bit, we joined finances and that's when I discovered all this debt. >> Wow. I'm so honored. I'm happy for you guys that you're doing this. >> I'm I'm sorry you found that you're in a hole, but you can get out. This is awesome. How much debt did you find? >> Um 50,000 in credit cards and 12,000 in the personal loan. >> Okay. Very. >> So 62,000. Who what was the credit was the credit card debt yours and his and just combined it's 50 or was it all his all yours? >> Um 99.9% his. >> Okay. Okay. But but he uses but he use the cards for utilities and groceries for household items. >> Yeah, I got you. Okay. And what's your household income? >> Um he makes uh 101,000 a year. >> Mhm. >> I make 21,000. >> Okay. So 122. That's good. Very good. No car debt. >> Uh two cars >> debt. >> And they're upside down. So that's not a good situation either. >> Oh, so this isn't your only debt. So how much do you owe on the cars? Oh. Uh, one car is uh 45,000. >> Mhm. >> The other car is 65,000. >> Whoa. Okay. >> I know. >> And is there any other debt? Is there any other debt? >> Uh, besides mortgage? No. >> Okay. And what do you owe on your mortgage? >> 315,000. >> Okay. All right. You have $110,000 in cars. >> I tell you what I uh can tell you for sure happened mathematically after doing this for 35 years. Okay. >> Okay. >> Your cars stole your food money. Meet every dollar budgeters Christy and Steve. They used to fight about money. >> I'm the spender. >> I'm definitely the saver. Now that they budget with every dollar, they're on the same page. Money is definitely one thing we do not ever fight about. Having the budget gave me the permission to spend. >> Knowing that the money is in each category, it just allowed us to work together better. >> Now that's what we call a win-win. >> Now we just have to pick paint colors. >> We can't help you with that. Every dollar, create your free account today. Your cars stole your food money. >> Yeah. >> And your food was put on a credit card. Your husband has not been irresponsible except for the time that he went to the car lot. >> Yeah. Had to have him car. >> Yeah. So you you guys are broke. Your car broke >> and he was trying to prop it up because there's not enough money to pay for these stupid cars and live. And he propped it up with credit cards. That's 100% what happened here. Your husband's not a bad guy. He was just trying to cover and make things happen. Yes. And he wasn't trying to hide it from me. He didn't want me to worry. He said he was trying to work on it. >> Yeah. And we're separate in it, right? He was just taking care of it. We're not We're not blaming him. I'm just saying that this credit card debt is not due to irresponsible spending. It is due to the irresponsible purchase of vehicles that you can't afford. >> I agree with you. I just don't know what steps to take. >> Okay. So, on the $65,000 car, who's driving that one? >> He is. >> Okay. So, it's a truck. >> No, the electric car. >> Oh, okay. >> Oh, crap. Which one? >> Honda. Honda um prologue. >> Okay. And you owe 65. Do you have any idea what the actual market value of this log is? I looked up Kelly's blue book and it said 30,000. >> Oh gosh man 30,000 for trade in or private sale or >> um actually I think it was traded. >> Okay. So it's probably worth 35. >> Okay. Um which still sucks. So basically what we're saying is Honda electric cars have tanked in value. They're like jumping off a cliff with no parachute in value. Okay. Wow. I didn't know they suck that bad. Okay. That's really bad. >> Um. >> Yeah. >> Okay. How about the $45,000 car? Do you know? >> That's a That's Do I know what it's that's worth? >> Mhm. Yeah. >> 27 27,000 >> and that was trade in. So that's probably 32. Okay. All right. Okay. >> So >> $30,000 loss. When did you buy the Honda? Uh um I'm sorry. I'm a little nervous. I can't think straight. Okay. Second. Um in the >> He's had it less than a year. >> Did you have negative equity in another car that you traded on it? >> I think he did. Okay. >> I think there was some negative equity. >> Cuz I I mean I know these electric cars suck on holding their value. It's just they're pitiful. But I did not think you could lose $30,000 in one year. I think that's probably not right. >> So it's not they don't they're not that bad. So um I hope either way you're there. Uh okay, here's the problem. If you keep it, it's going to keep tanking and you're going to look up and it's going to be worth 10 grand and you're going to owe 55. Right. And so, you know, it's almost like >> to save the patient, we're going to have to amputate the leg. You know, it's like we got to stop the bleeding here. There are too many too many amputations and too much blood in this metaphor, but I got mixed metaphors going. But anyway, yeah. So, we got to uh anyway, you've got to stop the loss in value by getting rid of the car because it's going to get worse and worse and worse at an increasing rate. Okay. So, wow. I'm so sorry. Um, do you guys have any money? I haven't asked that. >> No. >> Okay. It's not a surprise. >> What do you make, Michelle? You make 22,000. What do you do for a living? >> I was a nurse. I got injured and I'm on disability now. >> Okay. >> A permanent disability. >> Permanent disability. >> Sorry. >> Yeah. Yeah. Or is there any >> be out there working it? So >> yeah. >> Yeah, you because man, you can make some bucks as a nurse. >> That's a very good career. Oh man. >> All right. So anyway, back to the whole thing. The great news is you now know where you are. The great news is you're now working together. And the great news is we have identified the problem and it's called a Honda prologue. And it's caused all of this. It's all the result of buying a car >> and the $45,000. I mean, like I think all of it. >> Two cars. Two car. >> So, part of me would just take if you can get a loan from the credit union, take the difference. You each go get $5,000 cars. I'd rather be $55,000 in debt than 110. >> Yep. Yep. >> Um >> I I would if you can get the credit union to loan you enough money to get out of both of these, sell them both and get two $5,000 cars. >> That's a huge change in direction. Yeah. It's gonna it's gonna otherwise you're going to struggle with this for a decade. >> And so we got to stop this thing going off a cliff mathematically because you I mean you can tell from 65 down to 30, right? In a heartbeat, >> right? >> And we don't want to do that another year. >> Yeah. >> I I don't want that for you. I want you to be free. >> And you guys Yeah. And >> you think you could get a loan at the credit union to cover the deficits on these cars? Um, I'm not sure now because his score of the credit's gone down. >> Yeah. I'm going to go sit down and talk to him. If you've got either one of these loans with the credit union, it's a real reason to talk to them. >> Mhm. >> Cuz this is going to go sideways. It's bad. And then once you get that straightened up, you can address the other stuff pretty quick cuz you make good you make good money and now you're working together. The sun will come out. But we got to get rid of >> You guys have two to three years. >> You got to get rid of the law. >> Intense of intense intense. >> What a plan. Michelle, what a horrible car. And I'm a Honda fan in general, but that's >> But not an electric fan. >> Not an electric fan. >> Adds to it. >> Create your free every dollar budget today. The simplest way to budget for your