Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Fayette | Henderson | Lakes | McCracken | Warren | Webster

Dave Says – August 25, 2013

dave ramsey blackwhite 300KENTUCKY (8/25/13) – This week Dave discusses "Bankruptcy just for her?" and "The ever-changing budget"
 
Dear Dave,
My husband and I would like to buy a home in the next year or so. My credit is in pretty bad shape, so we’ve decided to work on getting his credit in better shape in order to qualify for a mortgage loan. I have $104,000 in debt, and $92,000 of that is in student loans. He has $13,000 in debt, with $7,000 of that a repossession on a car for which he was a co-signer. Can I file bankruptcy on my debts only? - Latrell

Dear Latrell,
You can’t file bankruptcy on certain, specific items. By the way, student loans are not bankruptable. Even if you filed, you would still have all that debt hanging around your neck.

I want you to own a home, but I don’t want your home to own you. Neither one of you have done very well with money so far, and at this point I’m afraid a house would be a curse instead of a blessing in your lives. I would encourage you to build a stronger financial foundation before you buy a house. In short, this means you need to get out of debt, save money, and start living on a budget.

Latrell, buying a house when you’re broke and deeply in debt is never a good idea. I’m not trying to be mean, but I really think you’re asking the wrong question. I don’t want you to try and use bankruptcy as some kind of escape from this situation. Right now, I want you to change your behavior with money and get things cleaned up with a good, organized financial plan in your lives. - Dave
 

Dear Dave,
Should a budget change every month? - Anonymous

Dear Anonymous,
Yes, it should. Your life changes every month, and your budget should reflect the ebb and flow of your life.

Now, some things will stay the same. Your house payment or rent should fall into this category. If you have a car payment, which I hope you don’t, that would be the same too. There shouldn’t be a big difference in the amount you spend on food most months though. You might spend more in this category during November and December thanks to the holidays, but overall it should remain pretty steady.

The biggest fluctuation you may see is in your utilities. I heat my house with natural gas, so the bill is much higher during the winter months. It’s just the opposite during the summer. We burn electricity to run the air conditioner, so the electric bill is higher in summer.

This is part of the reason I urge people to do a budget on paper, on purpose before the next month begins. You may look at the upcoming month and realize the kids have soccer pictures scheduled. There may be a school trip planned, or they may need back-to-school clothes and supplies.

When it comes to a budget, there’s no easy out. Things change from month to month, and you need to think, plan ahead, and itemize so your budget is an accurate reflection of your life! - Dave

* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.


Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

 

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

In Other News...

Woman Charged in Assault of 3-Year-Old Child

OWENSBORO, Ky. (8/29/14) — An Owensboro woman was charged with two counts of first degree assault following an… Read More

Owensboro Traffic Advisory

DAVIESS COUNTY, Ky. (8/30/14) — A contractor plans to restrict traffic to one lane on a section of Kentucky… Read More

Most Read This Week (Site-Wide)

August 29, 2014 6769

Luke's Flea Market Vendors' Home Away…

in News by Charles W. Riley II, SurfKY News
August 28, 2014 5511

Police Pursuit Spans Parts of Northern…

in Top Stories by Alex Piper, MCSO
August 26, 2014 5420

Owensboro Board of Commissioners…

in News by Beth Cecil
August 26, 2014 4958

Family Has Close Call with Tornado

in Top Stories by Paul McRee, SurfKY News
August 26, 2014 4584

City Street Closures on Strawbridge and…

in News by Abby Shelton

Most Read Stories from Hopkins County

August 30, 2014 2811

Ponderosa Madisonville to Donate 10…

in Top Stories by Rita Dukes Smith, SurfKY News Director
August 26, 2014 2224

Two People Injured When Vehicle Overturns…

in Top Stories by Matt Sanderson
August 27, 2014 1648

Crime Stoppers Top Most Wanted - August…

in Top Stories by Crime Stoppers
August 30, 2014 811

City of Madisonville Says 'Goodbye' to…

in Top Stories by Amber Averitt, SurfKY News
August 29, 2014 775

MCC Announces New Board Members

in Top Stories by Joyce Riggs

Most Read Stories from Owensboro

August 26, 2014 5420

Owensboro Board of Commissioners…

in News by Beth Cecil
August 26, 2014 4584

City Street Closures on Strawbridge and…

in News by Abby Shelton
August 26, 2014 2688

City Hall, Transit, Sanitation Schedules…

in News by Abby Shelton
August 27, 2014 2180

Owensboro Police Conduct Investigations

in News by Dennis Beard, SurfKY News
August 26, 2014 2012

Happy Birthday to the Edge Ice Center

in News by Brittni Bunn

Most Read Stories from Muhlenberg County

August 28, 2014 5511

Police Pursuit Spans Parts of Northern…

in Top Stories by Alex Piper, MCSO
August 26, 2014 4958

Family Has Close Call with Tornado

in Top Stories by Paul McRee, SurfKY News
August 27, 2014 4463

Five Injured in Three-Vehicle Accident

in Top Stories by Charles W. Riley II, SurfKY News
August 26, 2014 3308

Annual Everly Brothers Cruise In…

in Top Stories by Paul McRee, SurfKY News
August 27, 2014 2628

Muhlenberg Job Corps Former Student…

in Top Stories by Karen Robinson

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 03social 04social 22social 21social 06