He's Made Over $100,000 This Year And Still Can't Pay Off Debt?

brought to you by the Every Dollar app. Start budgeting for free today. >> So, I moved out to Ohio exactly a year ago with a goal to start clearing my debt away. I'm about $65,000 in debt. Uh, it's a year later and I'm still pretty much in the same situation. And I don't understand why. I pay rent now and I had to furnish my apartment when I got out here, but it just the math isn't adding up for me. How much do you make? >> Uh, at my new job, I make about a h 100,000 on a good year, assuming no layoffs. >> Okay. So, in the past year, $100,000 has flowed through your hands in the last year, >> or at least that's the gross pay. >> Yes. >> Are you doing a a pretty detailed budget, Lance, monthtomonth? >> I mean, uh, about six months in, I really started cracking down on it because I saw that I wasn't gaining much traction. Yeah. Yeah. I mean, how much is your rent a month? >> Uh, rent's not too bad. It's $1,450. >> Okay. Yeah. >> Are you taking home five or six grand a month? >> Um, a little bit more, actually. It's about $2,000 a week. >> Okay. >> Okay, that's great. >> Mhm. >> So, where is the rest of the >> Where's it all going? >> Um, well, like I said, I I pay rent now. before I didn't pay rent when I lived back home in New Hampshire. Um, and then I had to furnish my apartment and I guess the rest just just gets trickled out there. And >> $6,000 doesn't trickle out there. So, if I looked at your bank statement and I added everything up, where would be the big piles of money that disappeared? Is it eating out? Is it subscriptions? Is it spending? Is it gambling? Any vices? >> I I don't gamble. Um, I I have a lot of bills. I mean, I I have a truck payment that's $500. I have insurance that's $400 plus. I have a Harley that's $500. Um, >> break down the 65,000 for us. What are the balances and and what are they owed for? >> I have about It's 65,000 give or take. Um, I I have 30,000 on my Harley. I have 25,000 on my truck. I have $8,000 on a personal loan and I had $10,000 on credit card debt which I was able to manage down to $1,000. >> Oh, good. >> Well, what good news is if you sell all the vehicles? Well, I mean, yeah, you got that's 55,000 of your 65,000. I think we found the problem. >> I I looked into selling my Harley um back to the dealership when they >> No, not to the dealership dealership. They're going to give you the worst price. >> They'll screw you harder than anyone. >> Have you Have you Kelly Blue Booked it? >> Yes, they do. >> What's the Kelly Blue Book private party value? >> I believe it's at 17,000. >> I don't buy that. How are you that far underwater? >> What about your truck? >> I haven't looked up the blue book value on it. >> Did you roll over negative equity for this Harley? >> The Harley? No, it was a $30,000 Harley. It was brand new. >> Yeah. But how long have you had it? >> Um I'm going on the third year now, I believe. >> Cuz if that's the case, it's in half. I mean, the value of it went in half, which I don't I'm not up on my Harley's. I know that's probably shocking, but I don't >> Yeah, >> I don't keep up with the market on Harley's, but >> she's a Mitsubishi gal. >> That's That's bad. Okay. Okay. Let's just keep playing with the numbers here, Lance. Okay. Your truck. When did you get the truck? >> I got the truck uh last year right before I moved out to Ohio. >> And it was it used, I'm assuming. >> Yes. >> Yes. Okay. So, the good thing is the truck probably hasn't lost a ton of its value. So, let's just throw I don't know, let's say it's 22. Maybe you've maybe you lost three grand on it in the in the last year. So, what I would I mean, honestly, what I would do is go and take out let's see um I would do 20. I mean, maybe go if you can maybe sell both of these things. Sell both the truck and the Harley. You may take out a Well, I was going to say that's a good chunk of a personal loan with all the >> save the difference pretty quick making the money you're making. >> I'm I'm willing I'm willing to sell my truck and Harley. I do have a small car like a beater winter car that >> Perfect. You have three You have three >> things with wheels and motors. >> Yeah. Yeah. Yeah. >> Yes. >> Okay. So, here's your homework. You need to find out the private party value and then the amount you're underwater on. You either need to save that up through future paychecks or get a loan from a credit union for the difference so that you can clear the titles and sell these >> cuz that's going to be about 15,000 that you'll be negative on both of these around. So, >> I just I just don't know who to sell my Harley. I don't know how to sell my Harley, I guess, because the dealership was the only way I knew. And when they offered me less than half, I >> I mean, Facebook Marketplace, Cars.com, Autotrader, there's a lot of people looking. You bought a Harley brand new for 30. So 3 years later, someone's looking for it at half price. >> Okay. I just I've never I've never sold anything that I that a bank owned, you know. >> Sure. Well, here's the deal. You're going to need to clear the title before they can actually take possession of it. And that's why you need the difference either in cash that you save up or that loan from the credit union. And you can do all the transactions on the same day. So the day you sell it is the day you go down to the wherever you owe the the loan to and you pay off the loan with the difference. >> Yeah. Because you just cut all your debt in half, Lance, when you do this, >> which means you get back again. You said the $600 payment for the Harley, the $500 car payment. I mean, that's $1,100 less insurance. >> But here's what worries me a little bit is even after some of the things you were just saying. I mean, you still have a couple of grand sitting there um that is kind of disappearing that you still at the beginning of the call weren't able to tell us exactly where it was going. So, that's still enough money for me to be like, my only fear, Lance, is when you do all of this and it does give you margin and freeze you up that you're going to go back to this kind of spending habit that you're in of not knowing exactly where your money's going. And that's not going to be helpful either because instead of $4,000 slipping through your fingers, now it'll be 6,000, right? Or whatever it is. So, I want you to be able to know and control your money and where it's going. And so, before we get off the call, Christian will pick up and we're going to give you a year of every dollar, which is our not just our budgeting app, but our overall financial um you can put in all of your numbers and your entire financial picture can be in this app, which is so helpful because you're going to be able to walk through the baby steps, pay off this debt, and we can really walk with you through it in this app. But um >> and you'll feel a whole lot less overwhelmed when you just see all the numbers. You can see the progress cuz right now you're just sort of hoping. You make great money. You work really hard and it's disappearing through your fingers. And every dollar is going to help you take control of that uh to help stop that. >> Yes, I I understand. I um a year ago I was terrible with my money and I'm still not the best, but I I have tightened down a lot and I'm I've been living like a hermit for the last four or five months. I I'm I'm desperate to get out of debt. I want to >> I hear Yeah, I totally hear that, Lance. But what worries me is you've lived like a hermit for 4 months, but there's no been there's been no progress. So, that's what I'm saying. It's like the two things don't add up. I want you to be a hermit, but I wish you'd called him like I was a hermit for four months and I paid off $9,000 of my debt, you know, whatever it is. Like, I want the the sacrifice to produce a result because it's just crazy to sacrifice and have no result, right? And so that's the power of when you are working a very detailed plan is you're getting the results that the sacrifice, you know, is allowing. And so that's what I want those two parents because you'll you'll run on fumes the rest of your life if you're living like this and not making any progress is which is what I'm sounds like you're doing. So, um, yeah, as a single guy, Lance, man, I really would I this is this is the time in your life to cut everything and even if you want to work extra, you make great money, but man, if you even want to just throw in some extra income just to get it paid off that much faster um to be able to have some savings, I Yeah, I mean, I think >> the money I make is is with immense overtime. Like, I they offer it's there and I do work a lot. >> Yeah, I believe it. And I think that work ethic if it's channeled to more I just think you just maybe need more details and direction and it's going to help you see kind of where you're going. But you're right, your your habits are like I hear that that you are changing for the better which I think is a is a great um way to go. Oh, and you know what, Lance, too, I'm going to say like some people their money story is that one day they've they had the high had it moment and they change everything and then some people they're like, "Hey, it took me about 6 months to kind of get all this under my belt to really learn and understand it and then they take off." And that just may be your story, which is great, but I just want you to see some progress to at least keep you motivated to stay with it. >> Create your free every dollar budget today. The simplest way to budget for your