QUESTION: Melissa and her husband have $135,000 in consumer debt. They owe $60,000 on their cars. They also have several home equity loans. What can they do to attack the debt? What if they can’t get another home equity loan to pay for the amount that they’re upside down with the cars?
ANSWER: Sell the cars and that will get eliminate $60,000 of your debt. You don’t have to get a home equity line to free up the car loans – just a small personal loan.
Being out of debt has to mean more to you than owning a car.
QUESTION: Rebecca wants to pay off debt using her husband’s $300,000 trust fund, but he doesn’t want to touch the money. He wants to use it for their kids’ college education. What should they do with the trust fund money?
ANSWER: You’ve got more than enough to pay off your debt and fund your kids’ college education and that’s what you should do.
The only problem is that you have a bad set of money habits. If you use the trust money and keep your old habits, you’ll be right back where you were before you got the trust fund. You need to go through Financial Peace University and apply new money habits that will change your family tree for good.
QUESTION: Gary is considering hip replacement surgery, but it will cost about $40,000. He’s debt free and wants to know how to avoid going back into debt to have this surgery. What can he do?
ANSWER: You should sit down with the hospital administrator and surgeon and offer to prepay for the surgery. Many times the hospital will knock half of the cost off of medical procedures if you’ll pay up front.
The price they’re giving you is either from an insurance company or the hospital, both making the assumption they’re not going to get any money from you at all. If you go in with cash beforehand, you can negotiate the health care you receive.