Jenny
Appearances
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Hi. Hi, Kim. Hi, Jade. Thank you for taking my call.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I just have a question. My husband and I have about $167,000 worth of debt, and I really wish I had found y'all sooner. We are on baby step two, and... The house is $125,000 and we have some consumer debt of $42,000. Okay. And my question is, my husband has, we've been married for seven years, seven plus years, and he has a separate account than mine. We have two checking accounts and then he has
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
an emergency account that he only has access to, and I'm not really sure how much is in there, but he does use it for emergencies and for, like, we have all of our vehicles paid off, and they do need work from time to time, so that has come in handy.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And he's kind of, we've kind of done this thing where he pays the house note and then I pay the consumer side of it and he's wanting me to, um, like just get in there and get us out of debt. Oh, okay. And I'm like, um, we need to put everything in one checking account. Right.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Um, he just says, well, I want you to have your own money. Um, And I'm just, I know that.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
See, and that's something that I've asked him before because I don't have a problem with us having the same account. You know, that doesn't bother... We've been together for over seven years. I mean, it's not... I'm not going anywhere. He's not going anywhere, so... I'm not really sure. And at this age, I mean, we're in our 50s.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
So it's not like we're spring chickens and we're just trying to I want to get all this.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Honestly, I'm the one that gets stuff paid off, and he's always bragging about me. And I'm like, well, if you really want to do this, I want to do the scorched earth approach. And he's not a fan of that, which I can get, you know. He does put, you know, a portion of his check, every check into this other account that I don't have access to, which is for emergencies and all of that.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yes. And what does he say? He just is kind of like, well, it's okay. I've got you covered, you know, and I'm just, It kind of frustrates me in a way.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Hi. Hello. I'm a 90s kid, by the way. Nice. Come on, Jenny. My parents are getting old.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
My parents are getting older, so now they're in their late 70s. They've done well for themselves, but now I'm helping them because I noticed they were paying quite a bit of money into a flexible, premium, adjustable universal life insurance that they've had since 1986. Oh, man. That thing's got mold on it. Well, my dad worked in law enforcement and his initial hourly rate was only $4.80. Wow.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
So it made sense to them back then to have this $100,000 policy for him because, you know, you don't know what's going to happen. But after doing some research, I've gone back and forth. The policy has been sold from company to company. They don't even have the records for this policy because it's 39 years old. And their cash value has basically depleted. My mom's very smart.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Do you know what it is, the cash value? No. Oh, yes. So the first or the cash value now is, I think, down to a thousand dollars. Oh, my gosh.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Basically, they've totally paid forty eight thousand dollars for their money into this policy. Okay. And so they have three different, well, one policy is 25,000, two riders, one for 50 and one for 75. So basically 150 for both my parents. Okay. Right now, what happened was they said, Oh, you stopped paying your payments. But my mom said, no way I've paid my pay.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
She's paid over the amount over all these years.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Basically what happens, and I've been researching, so it's imploding on itself. So now their cash value is gone. And my question is right now we're at a level playing field. Do they stop paying this? I'm trying to get the answers from somebody. They won't give them to me.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
They they've owned four homes. They currently own three homes. But my parents, being the great people they are, are leaving those homes to their children.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
They won't sell those. I would say they are probably worth a million and a half.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
No, they only owe a little bit left on one home. I think $25,000 left on one home.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
They don't have stock market. My mom didn't come from that era. She didn't want that. So I think in savings they have liquid about $250,000. Okay, $250,000 cash. Okay.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I am pretty sure, so I'm not very smart on life insurance policies, but once you stop paying, they're gone, right?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
How old are they? My dad's 78 and my mom is 75.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Yeah, it's... But that's what I'm... Now that their cash value is gone, where do all these fees come from after they make their own... Because it's just a terrible product.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I'm trying and I can't get anybody to help me or help him while we're both here, but nobody will help. Nobody will answer my questions. It's all, well, we don't know. We have to look it up and nobody has answers for me.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Yeah, I mean... I'm a 90s kid. I'm good at getting somebody's worst nightmare to come out.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I'm unfortunately at the time in my life where insurance is such a fraud, and I know I'm saying that blanketly, but after looking at all of this for them, I'm thinking, what a fraud. You could have put that money... Listen.