I'm Afraid To Use My Savings To Become Debt-Free

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[jimroscovius]

I'd be afraid NOT to be debt free. We've been debt-free for years and paid off our house a few years ago. It's a GREAT feeling!!

[seventhchild]

I Love being debt free!....LIVING a downsized, simple, healthy, debt free, spirtual life is great!

[JaketheJust]

Been debt free for two years now. It is a liberating feeling.

[krobdawg]

100K in the bank and don't wanna pay 16K to become debt free? Bruh...

[jimmymcgill]

He has the money. There's no reason for this call.

[victors]

I understand him, when you save for a while and you see that saving is growing and growing at some point is tough to withdraw money from that

[Sexybaby]

She sold her home and some of the money in savings is from the sale of her home. The debt is her loans. Allow her to use the proceeds from the sale of her home to pay off her loans. Then you both can save the monthly payment plus more money for other goals.

[marciafernandes]

He have plenty of money to pay the debt just pay it 🤦

[cookiemichelle]

I completely understand this caller. Saving from scratch...it's super hard to part with a sizeable portion of your savings . I think he may feel more comfortable setting a timeframe to pay this (like 4-6 mths) to pay this off. It hurts a little less in my opinion.

[David-woun]

This call had to be a humble brag; no chance someone with that much in a bank account would call with such a ridiculous question.

[susani]

Thank you Ramsey Show! You answered my question too.. I have some savings as well and I didn't want to touch it because I didn't want to lose my savings, however, you are right about feeling better about getting rid of your debt! I don't have any debt right now, but I need to put my savings in some kind of account because it's just sitting at home. I want to further my education in the future because I don't have a college degree or certificate at the moment. So that is my plan financially and me and my husband are trying to get a house hopefully soon!

[javierhuizar]

Pay double or triple the minimum until you feel safe enough to pay it off in one lump sum and don't get new debt.

[BarbellFinancial]

What is there to be afraid of as long as you maintain an adequate emergency fund?

[Robmar]

Huh... I'm scratching my head over this one.

[ryankelsey]

Hypothetical. If you have 5000 in debt, and 5500 dollars in savings, you don’t have 5500 bucks. You have net 500 dollars. Pay the debt!

[ryanveith]

In the same boat have 8k left on the wifes car and thats it knock them out.

[briankowald]

As soon as I heard he has $110K in the bank, I thought "didn't need to hear this one". Obvious answer.

[mrkadiz]

Sell the car and dogs. Rice and beans and dont forget to deliver pizzas

[flea]

I see the point. I don't owe anything but when I did, I refused to use saving to pay off debt. My logic is lack of savings leads to debt. But I mean, he has 110k. Pay off the 16k. The call is a little silly.

[emaldon]

I would pay it off and then stay gazelle intense to build that savings back up and into a proper 3-6 month emergency fund.