News from the Tennessee Valley Columnists

Dave Ramsey

Husband doesnít feel guilty about being in debt

Dear Dave: My husband and I have about $60,000 in credit card debt. He doesnít feel bad at all about it, but Iím determined to clean it up and start living right with our money. Iím starting to get tired of trying all by myself, though. What can I do to reach him? — Donna

Dear Donna: The last thing you want to do is go around yelling ďDave said do thisĒ and ďDave said do that.Ē If you start hammering him over the head with that kind of stuff heíll tune you out in a heartbeat.

Right now, letís just be patient and keep talking to him about the issue. He may need some time to think things through and realize how important this is to you. Try adding up all your payments to show him just how much of your money is going into other peopleís pockets every month. If youíve got $60,000 in credit card debt, itís a lot!

You might also take all those payments and show him how much you guys could save and invest if those credit cards were gone. Iíll bet thereís lots of stuff youíd both like to do but canít afford because the credit shark is gobbling up all your cash. Your income is your best wealth-building tool, Donna. Without all those payments, you two could save and invest like mad, have some fun and retire a wealthy little old couple.

Right now youíre both slaves to the credit card companies. But once he has a chance to process this information, Iím guessing youíll see some righteous anger out of the guy.

And hopefully heíll be motivated to join the fight! — Dave

Private school tuition

Dear Dave: Iíd like to send my kids to a private Christian school, and the tuition is $3,500 a year. Theyíll start school the same month weíll finally be out of debt. Weíd have to pay this out over the course of the school year, so would you consider this to be an investment or more debt? — Ed

Dear Ed: I donít borrow money whether itís an investment or not. But lots of private schools have tuition plans where you donít have to borrow money, and you just make two or three payments during the academic year.

I donít know if I would really call that a debt, because you can always take the child out of the school if you see you canít make the payment. Just make sure you carefully look over any contract involved and know what youíre getting into before you sign up for the ride.

You donít want to obligate yourself to money you donít have. Just save up, and have a place in your budget for tuition. — Dave

Guaranteed riders

Dear Dave: Is getting a guaranteed rider on a term life insurance policy a good idea? — Chris

Dear Chris: It used to be that I wouldnít buy anything but a guaranteed level term policy. But these days the marketplace is very competitive. If your company raises its rates, you can easily shop around and find another for the same price you were paying before or even less — providing that youíre not seriously ill.

One of the best guarantees is the marketplace. Itís a real dogfight out there today in terms of pricing on these kinds of policies, and the real winner is the consumer. — Dave

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Dave Ramsey Dave Ramsey
DAILY Columnist

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