Erica in Knoxville is working three jobs seven days a week. She has $40,000 in credit card debt and another $35,000 in student loan debt. She can pay her bills but has little left over. Dave tells Erica she has to start budgeting in order for the money to work harder.

Dallas in Missouri separated four years ago, and during that time, his wife purchased another house and vehicle. They are back together, but are now facing foreclosure and repossession in addition to more debt. They’re considering bankruptcy but wonder if there’s a better option. Dave says it’s time for a budget and cutting back.

A Twitter listener asks how much one should spend on an engagement ring. Dave thinks you should spend no more than one month’s salary on it.

Jenna on Facebook asks what disability insurance is and why a young, healthy married couple would need it. Dave explains.

Gerald in Dallas is upside down on his vehicle. He can either make repairs to it or get caught up on the payments, but he can’t afford to do both. Dave says Gerald and his wife need a budget.

Mark in California and his wife bought two used cars last year, and they spent about $40,000. They also have a $40,000 personal loan that they owe to Mark’s father. When should they refinance and pay off these debts? Dave explains that the debt falls in Baby Step 2, and they should refinance for a better interest rate.

Karen in Cincinnati and her husband live on a large farm in a secluded area. A neighboring area just went up for sale, and they want to buy it to keep from seeing any other houses. Can they afford to buy it? Dave advises Karen to save up some money to buy it and offer the seller an option to buy.

Dave reads some comments from listeners.

Shannon in Iowa has a 12-year old, and Shannon decided to put her on commission. She doesn’t want to give or separate her savings from spending. How does she get her child to understand why she needs to do these things? Dave thinks she needs some discipline.

Dave reads an article from CNBC on the economic stimulus and its effect on the economy and discusses it.

Maggie in Dallas was a CEO for a company, and she was in the middle of refinancing her house when she was put on hiatus. A defaulted loan for the company has shown up on her credit report, and now she can’t refinance. Dave tells her she isn’t liable and they shouldn’t be reporting it to the credit bureau.

Josh in Monterey has an interest-only mortgage with an ARM that expires next year. He also has a second mortgage, and he believes they are about $100,000 upside down. Dave advises Josh to refinance, ask the home equity line of credit to subordinate, and work his way through the consumer debt.

Dawn in Washington D.C. and her husband make about $168,000 a year, but they have student loans and credit card debt totaling $225,000. About $200,000 is student loan debt. They’re both doctors. Her husband is about to buy into a dental practice in 2012. How do they come up with the money to buy into the practice? Dave recommends renegotiating the purchase date.

A Twitter listener asks what a charge-off is. Dave explains.

Christy in Dallas has been with her company for more than 20 years. She’s had eight back surgeries and always returned to work until this last time. She is losing her job and her health insurance. What kind of penalty would she face if she cashed out some of her 401(k) to pay COBRA? Dave explains the penalties.

Dave reads comments from listeners.

Jack asks how long it took Dave to write his first book. Dave discusses it in depth.

Brad in Grand Rapids is calling about a settlement his son received. It’s in a savings account, and since the account has gone dormant, he needs to move it. Dave advises investing it until he’s 18 and suggests a growth stock mutual fund.

Billy in Dallas owns a small business, and it’s doing really well. He would like to sell it someday, but how does he go about building it so that it’s saleable in the future? Dave explains.

Kendria in Texas has a mortgage with an interest rate above 8%. She wants to remodel the house. Should she refinance it and then remodel or just go ahead and remodel? Dave doesn’t think she should remodel it unless she can pay cash.

Dave reads comments from listeners.

John on Facebook asks Dave to go over the types of mutual funds he recommends.

Sarah in Columbus has a $38,000 student loan and $50,000 in a Roth IRA. Should she withdraw some of the Roth to pay on the student loan? Dave recommends continuing to pay off the student loan and leaving the Roth alone.

Tammy in Dallas has a student loan and some land that she owes money on. She has a balloon on the land and is selling a portion of it. Should they go ahead and start building even though the student loan is still there? Dave doesn’t think so.

Stephen in Virginia is building up savings for an adoption or infertility treatments. But now he and his wife are going to start retirement savings and wonder if they can count the employer match toward their 15%. Dave says no but does suggest not contributing as much toward retirement while they fund the adoption or treatments.

Richard in Pensacola bought a whole life insurance policy 20 years ago when he got married. He received a 1099 from it for $18,000 this year. He hasn’t touched it in all these years. Dave thinks he incorrectly received a 1099.

Dave reads comments from listeners.

Dave joins Your World with Neil Cavuto for a simulcast.

Brad from Twitter asks how Dave feels about savings bonds for kids. Dave thinks they’re useless.

Keisha in Birmingham has a 2006 Trailblazer she financed at a high interest rate. She wants to refinance it to a lower interest rate since she still has three years left on it. The company she originally financed through won’t refinance it because of her credit. Dave recommends an extra job to pay it off early.

Richard in Tampa and his wife own some rental property and their personal home. They have enough money to pay off one of the rentals. Should they pay off the home they live in instead? Dave recommends getting long-term care insurance instead and paying off their home.