How Do I Get Out Of Debt Only Making $80,000?

Explore More Shows from Ramsey Network:

Ramsey Solutions Privacy Policy

[KanaTron]

He's telling the truth... I stopped spending, made a budget and I did feel like I got a raise.

[BrianaBudgets]

The same way I’m making $30, 000 and paying off debt. By not making excuses.

[JSM.]

As a truck driver I am certain he spends at least 100.00 a week on lunch/pit stops.

[youngbloodrb]

Perfect example of, you can wander your way into debt but you can not wander your way out

[guitarman]

I've been living this "zero based budget" for 3 years. I cleaned up approximately $30k in various debts (car, credit cards, etc) and have paid $78k off my mortgage. I will have my mortgage completely paid in the next 3 years. This system works.

[DioDiablo]

It's scary how people can make this much money and still have no idea how to budget or pay off debt

[forzaazzurri]

Rent is only $500 a month?! Where does this guy live, in Burkina Faso?

[flygirl]

Dave speaks the truth. As soon as I nailed down a zero based budget I found money I never knew I had!!

[SpoonHurler]

"I pay 6k in rent a year and I only make 80k... I can't get out of debt!!!!"

[JakePicci]

I make $60, 000 a year and have paid off $37, 000 in the 9 months since I started. Started with $112, 000 so I'm about a third of the way there. And to be honest I still could tighten my budget even more. This guy can knock his debt out in less than two years if he's willing to take it seriously.

EDIT: Because everyone has been attacking me claiming I'm full of crap. I should have mentioned, I was very fortunate to get a job that provided me with a vehicle so I was able to sell my Jeep that I owed $16, 000 on for nearly $20, 000. So that was a HUGE chunk of my debt. I also no longer have to pay for car insurance or gas. So yes, I forgot to mention that part, but no, I'm not full of crap. I also receive a 15% annual bonus so that's an additional $6000+ after taxes. And honestly, I don't really care if people still don't believe what I have to say. I'll continue to knock my debt out and make sacrifices. Forgive me for not mentioning every single little detail. I am now at $41, 000 in 12 months. Ignoring the Jeep sale that eliminated a quick $16, 000, that means I've paid off $25, 000 in 12 months or a little over $2, 000/month. My take home pay is ~$3500 so no, it's really not absurd.

[nspa]

I cleaned out $75k in debt with a salary much less than $80k during that time. Took over 4 years but it was done.

[bluejedi]

I earn 35K a year. I have my student loans paid off, I pay my credit cards off every month in full. Our cars are paid off (imine is 25 years old, Hubbys car is 20 years old) but runs/works great. Have 7K in my emergency fund (2.5 months living expenses) with a goal of having a years worth of living expenses in emergency savings. Our Roth IRA is sitting on $6200 that we add a little to each month, my 401K is sitting at 11K.
Able to take 2 vacations every year (one in the winter, one in the summer) that is planned for and saved for-thats a line in the budget plus a few 3 day weekends spread out here and there. It's about *being* smart with your money. If we can do this with 2 kids a dog and 35K a year, WTF can't someone do it with 80K+ a year??

[gingercat]

I like how Dave did not touch on the guy's living situation after he heard the rent is only $500.

[Nonsense]

I love the zero-based budgeting method. I've been doing it for the last 2 years and I'm totally debt free as of last month

[Lady.Luck.]

Our family of 6 has been making 80k for awhile. We paid off $70k in 5 years following Daves plan.

[JakeSpradlin]

Take advantage of this low rent payment and attack that debt!

[alexbob]

How you have 40k in student loans when truck driving only requires an Class A license ??

[LifeHackMEDIATV]

Its simple. Its not how much income you make. Its what you do with the income you make. Every dollar has to have an assignment. Great video Dave

[iamjacquesbarjon]

The guy makes $60, 000 after tax. There’s no way in hell he’s paying off $55K in a year. Be real, Dave. 2 years would be incredible. 3 years is more realistic. 4 years would be too slow.

[paulinoaz]

I bet most of his money is going towards gifts, dinner, going out with the girlfriend and keeping her happy. His rent might only be $500/month but he is paying a lot more for living there.