Drain $21,000 Of Savings To Pay Off Debt?

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[zacharymeredith]

If the company is paying for the loan let them.... if you leave the company before 7 years pay off the remainder

[ryanmcmahon]

Hey Dave, I’m 17 and currently a senior in high school. I found your channel several months ago and can’t stop watching! The advice you give shall serve me well as I enter my adult years. Thank you for what you do. 😌

[giselleduff]

Immediate "Uncle Dave" mode. Lol. "Who's 'us'? " 😁

[KourttneyL]

I wish my family taught me how to save money and work hard for it. Man it sounds amazing to have that money saved up at 22.

[mattarenz]

Save 10k of your savings incase your car dies. Pay the rest towards student loans. Let your company keep paying the minimum while you save your emergency fund. Why not take their money, be ready for buying a car when needed. If you lose/change your job just pay off the student loans then

[JM-gsjn]

Take $20, 000 out of savings to pay a debt the employer will pay for you?

That's insane!

[Chrissers]

My dad taught me "debt is bondage" growing up. I think the world of Dave Ramsey and largely agree with his principles, but this one just does not make sense to me. Personally, I would park the $21K in a low risk instrument like a CD or T-Bill and ear tag it to pay off that student loan debt. If she leaves the company, pay the debt off immediately, if she stays let the company pay the student debt off and once it is paid off she can add that cash pile to her wealth building.

[marcusarelius]

Regardless if you stayed at the company for 7 years or 1 year, why wouldn't you take advantage of the program offered by your company to pay off the minimum monthly payments? That's free money, money that's going toward principal. I guess I'm missing something here....

[marknc]

She could let her company pay the minimum payments on her student loan. Then she could match those payments each month with her payment designated to go to the principal of the loan.

[SeanBaker]

You do not pass up free money. Let the job pay it until you stop working there while you continue to save money.

[jbbourbon]

Let the company pay for it. Shocked at Dave’s advice here.

[LoveGuruBlaire]

I just started listening to Dave and I have already learned a lot but I think this advice is terrible. Her employer is offering to pay offer her student loans, you'd take it. DUH! It's free money and that's the benefit of working for corporate. Save your money, invest it, etc. Why did she even call him with this question? The answer is obvious.

[TheRealFrostysaur]

Man, she’s 22 and has 21k in her savings, I’m here with $400 :/ and I’m 21. It’s hard not to be envious. I make 24k a year after taxes.

[suzysantana]

I disagree with him on this one. Gurl let them pay it off while you are working there. It's not like you are leaving the job tomorrow. Save your $ for a newer vehicle that you will need very soon and dont stay broke.

[SensSword]

No tech jobs out her way are stable. Lots of people stay at a place for 2 to 3 years. 7 years at the same tech company is unheard of.

[AntonDaniels]

This is silly advice and why I sometimes don’t agree with Dave. I don’t care how long I carry the debt... if they are paying for it, let them. If you leave, then pay it off, otherwise keep riding the wave 🌊

[mattchimes]

2:58 The moment Dave decides he’s gonna be stubborn, and justifies a broad response to a specific issue that he already knows to contain a variable that completely changes the equation.

Dave, even you knew in this moment the right answer, but you chose your ego here. You even explained your ego, instead of focusing on the best advice for this situation.

[ruly]

Unless the company has a rule saying you must pay them back if you don’t work with them for an X amount of years then paying it off with your own money is kind of nonsense

[ssdd]

Let your company keep paying your student loan and then you add an additional payment each month. That should wipe out your loan in 1/2 the time about 3.5 yrs. It speeds the process and you can still get the car and still have $$ in the bank.

[smithersrob]

Because her company's making the payments paying it off wont affect her cashflow, there is no snowball effect because paying off the loan doesn't free up those payments to devote to other priorities. I would switch baby steps 2 and 3, save a 3 month emergency fund then buy a $6-8k car. Once you've got a a fully funded 3 month emergency fund and a serviceable car save up the balance of your student loan and pay it off to get it out of your life. In about 9 months you're going to be 100% debt free, have a $6-8k car and a fully funded 3 month emergency fund but because the loan payments are being covered by your employer I'd switch the order of priorities around a little.