“You’re Living Like You’re in Beverly Hills not West Virginia!”

[Music] Xander shops all the top term insurance companies to save you money. Get started at xander.com. >> My question comes to my wife and I have made very poor financial decisions in the past and we're we're trying to take care of that now. Um but my question is how do we get rid of vehicles when we are so upside down on them? Um because that's our biggest hurdle right now. >> Okay. Well, walk us through the exact details of the vehicles. uh what you owe and uh what you could get for them uh in private sale. >> Okay. So, uh we'll start off with the most expensive. Um it would be uh my wife's Jeep. Um we owe 47,000. Um on a good day, uh high Kelly Blue Book value is 35,000. Um and then my car, uh it's a Civic. Um we owe 21,000. On a good day, it would be 18,000 that we could get. Um, and then we have a motorcycle as well. Um, and motorcycles are weird. Um, it's hard to find a like direct value with those. Um, but we owe 10,000 on that. And, you know, I would be lucky. I'd like to think I could get 8,000 out of it. >> So, we're about, if I did quick math, George, 17,000 in the hole on all three. Okay. Is that all of your debt? You guys have other types? >> Oh, no. We have we have a lot of other debt and that's that's what we're trying to get on top of, you know. >> What are the total payments for these cars >> and motorcycle? >> Uh so the Jeep is 960. Uh the Civic is 455 and the motorcycle is 305. >> Oh my god. >> Goodness gracious. >> I literally have a stomach ache like right now. >> I got to get Ken some Tums after this. Some Tums. >> What's your household income? >> Uh about 67 a month after taxes. >> Okay. Are you guys doing any investing right now? >> No. >> 6700? >> Yes. >> Okay. And you got over $1,700 in payments on these vehicles. >> Yes. Unfortunately. >> What's your rent or mortgage? >> Um, our mortgage is $468 a month. >> 468? >> Yes. >> Do you live in a trailer? >> I do. Yes. >> Goodness gracious, man. Your Jeep is nicer than your house. It is uh we've like I said we've made really poor financial decisions and we're just trying our best to get out of it at this point. >> Okay. What other debt do you have? What's the total balance? Break. >> So total debt of everything is 29,000. >> That's just consumer debt. >> Uh well, yeah. So that includes the vehicles, the house, and then uh credit cards um uh would be 41,000. >> Okay. Y'all are just living like you're in Beverly Hills, not West Virginia in the hills. >> That's That's for sure. >> What made you guys want to turn this thing around? >> Um well, so um I had a security clearance and um I had again we've made super poor financial decisions, but I had a vehicle years ago get repossessed. Um and that repossession come back up on my security clearance. and with the security clearance concern. Um, obviously that was like a slap in the face like, okay, we need to get our our life together here. Um, and uh, so debt's been trying to or sorry, our extra income's been trying to go towards taking care of that. Um, and yeah, so >> okay. Well, I I'll give you the advice on the cars. You're 17 grand underwater. So that's your magic number of how much money you need to come up with to get out of these payments. So, either you need to save up that amount or you need to get a loan from your your local credit union to cover that amount. I don't know that they're going to give it to you. My guess is your credit shot. >> It is. It is. And we've tried to do that and they won't they won't work with us. >> How much can you put away each month? You know, if you cover all the bills, minimum debt payments, how much can you set aside? >> So, right now, we're working with around $600 a month. Um, and and like I said, we've been trying to use that towards our other debts and stuff like that in the last year. Um, but then like I said, that that repossession from years ago kind of came up and that's what we've been trying to tackle at this moment. >> All right. Um, >> I'm going to ask a question here. Uh, what would what would it cost you to rent? Uh, I know you're in a trailer. Did you have a mortgage on, but what would it cost you to rent in your area? >> Um, so that's tough. Like the cheap because we've been looking at that. Um the cheapest that we found is like 1,200 a month. Um and of course we've been looking at other areas. We've been looking at outside of our county and stuff like that, but uh yeah, it's not really found anything. >> Well, what do you mean? You looked outside your county. You didn't find anything to rent? >> No, we found plenty of stuff to rent, but like $1,200 a month is far more than we can afford. >> I get that. But I mean, what about like somebody has got a a a bedroom over a garage? Have you looked at that kind of stuff? the non-traditional rentals. >> Well, we we have two children, so >> I know, but you're in a trailer that's losing value. And where I'm going with this, George, is I don't know if you have any equity in that trailer. >> So, we owe about 40,000 on the trailer. It's a It's a 2017. I bought it brand new in 2017. Um, and I don't Yeah, I don't think that it would be worth much more than that. I don't know. I don't know how I would even go about selling a trailer. You know what I mean? >> I don't know either, dude. But I >> You got the credit card debt and the cars. Anything else? And of course the trailer. Do you have any other debt? >> Uh well, student loans. Um but that I included that in my credit card debt. It's uh 11,000 in student loans. >> Okay. Well, here's the the hard truth. At this rate, if you put 600 bucks away to get to that 17,000 amount you're underwater on, which by the way just lets you sell them. That means you have no vehicle. You have no money to put towards another vehicle. it would take you 28 months >> and by then those cars have dropped even more in value. So we don't have time to play that game. You guys are both about to be working 80 90 hour weeks to climb out of this. There are no good solutions here. >> Uh that's I mean my wife has picked up a second job. Um because of my career now I'm not allowed to pick up a second job. Uh so you know we're we're doing what we can with >> what do you make? Uh, so I bring home um about five grand, a little over five grand a month. >> Can you switch careers and go work three jobs? >> I I can, but uh my you know, I've been in this career now for 12 years and retirement is only eight years away. So >> retirement, dude, you can't even eat. You're broke. I I understand that. But with I mean I'm eligible for retirement at 20 years and you know obviously I can stay in it longer than that. But I mean let me tell you something young man. You called and your response to what we're telling you is just a heartbeat away from being stuck in this cycle the rest of your life. And I I was born in a small town in West Virginia. I know that state. >> Yes sir. I know the economic situation that you're in. You don't want to do this to yourself. So, your response of, well, I'm I'm in this. This is where I'm at. And then, but eight. I mean, you you have a full-blown crisis on your hands. >> I agree. >> How old are those kids? >> Uh, nine. And the other one's about to turn two. >> My goodness, man. If you do it for nothing else, do it for those kids. You got to bring in some more income. This is an income issue right now to fix. >> I don't care what the benefits are cuz you're going to be stuck in the cycle the rest of your life if we don't make severe changes. >> Well, so my career, let me just clarify that. My career, I'm in the military and so it, you know, I can I can get out of the military, but obviously I'm in a contract and I got to wait and all that kind of stuff. >> Well, your wife's going to have to take the brunt of it for now. >> All right. So, we get that. So, now she's got to work like crazy. and and she is >> income is your only way out of this cuz we can't even get rid of these cars because of the dumpster fire situation with them being underwater. Maybe your credit gets decent enough over time that you can get a loan from the credit union to cover the difference plus a little bit extra, but man, this is a no-win situation. So, sorry. Xander is the best place to find term life insurance to protect your family. Visit xander.com for quotes