You owe how much?!

Question: Jay and his wife are disagreeing. She doesn't want to consolidate their debt into a home equity loan, but he does. Dave tells him why he's wrong, and how to think with your heart as well as your head.

Dave Ramsey's answer: Consolidating your loan may make mathematical sense, but unless you change your behavior, you'll go right back into debt. Your income vs. your debt is way out of whack; how messed up is it that you make $30,000 a year and owe $21,000 on a truck?! That is absolutely ridiculous! Sell that truck so fast your head will spin. You guys are on an EXTREMELY tight budget and you need to change. Your wife is right; a home equity loan won't fix anything. Get on a written money plan and sell that truck!

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