ARIZONA NEWS

Dave says: Getting out of a big mess doesn’t always feel good, but it’s necessary

Feb 13, 2024, 1:00 PM

In this week's article, Dave Ramsey talks about when to buckle down and climb out of that financial...

In this week's article, Dave Ramsey talks about when to buckle down and climb out of that financial mess. (Pexels Photo)

(Pexels Photo)

Dear Dave,

I’m a single mom, and I opened my own small business last year. The business isn’t growing at all, and my mom and dad are helping me with the bills. On top of all this, I don’t receive any child support payments from my ex-husband. But my biggest concern is our home. I bought it four years ago, and when I opened my business, I did it with a home equity loan. Do you have any advice?

Tammy

Dear Tammy,

You need to close up your business, at least temporarily, and go find some money-making work. I’m sorry to be so blunt, but you’ve got a really big mess on your hands.

Long story short, the money you make at another full-time job is likely to decide whether you can stay in your home. If you’ve got a mortgage, home equity loan and business debts hanging over your head, the chances of this are slim. You probably need to consider the idea moving into a small, affordable apartment for a while, too. If you do this, get your debts paid off and your finances back in order—which includes living on a budget and saving—you might be able to buy a house again in a few years.

I know the idea of giving up your home and business is hurtful, but sometimes when you have a serious illness, extensive surgery is needed to fix the problem. And right now, you’ve got a very serious financial illness.

I want you to understand how I’m looking at this, Tammy. The house alone is not the problem. You borrowed money to open a business, and that was your first mistake. You also have no savings, which is another mistake, and now your business isn’t making a profit. See how all of it combined adds up into one big mess?

I love your spirit, and the fact that you want to be an entrepreneur. But you’ve got to get control of your money first. If you don’t, this thing will eat you alive.

—Dave

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Phoenix woman hit killed by car West Phoenix...

Payne Moses

Woman dead after hit by car while crossing street in west Phoenix

An adult woman was struck and killed by a car on Friday while crossing a street in west Phoenix, authorities said.

22 minutes ago

I17 Bumble Bee bridge ADOT construction Feb. 10-12 overnight...

Payne Moses

I-17 overnight closures next week to remove old Bumble Bee bridge

The southbound Interstate 17 will be closed overnight from Monday to Wednesday due to scheduled reconstruction of the Bumble Bee bridge.

1 hour ago

asthma GSK Arizona AG Kris Mayes sues for exploiting drug maker...

Payne Moses

Arizona AG accuses asthma drug maker of scheming to avoid Medicaid rebates

Arizona Attorney General Kris Mayes on Thursday sued drug producer GlaxoSmithKline (GSK) for harm done to asthma patients by discontinuing a long-time product.

3 hours ago

According to a recent study, film production in the metro Phoenix area generated $29.1 million in e...

David Veenstra

2024 film projects made $29.1M in economic impact on Phoenix area, new report says

According to a recent study, film production in the metro Phoenix area generated $29.1 million in economic impact in 2024.

5 hours ago

Tucson border patrol...

Roxanne De La Rosa

3 men arrested near Tucson after fleeing from Border Patrol

Tucson Border Patrol agents arrested three men on Tuesday near the southern border, after they tried to flee from law enforcement.

7 hours ago

The Arizona Attorney General was granted a temporary restraining order after filing a suit to stop ...

David Veenstra

Federal judge grants Arizona AG temporary restraining order over DOGE personal data access

The Arizona Attorney General was granted a temporary restraining order after filing a suit to stop DOGE's access to sensitive personal information.

9 hours ago

Sponsored Articles

...

Bright Wealth Management

How IRAs are a helpful tool in retirement planning

When it comes to retirement planning, individual retirement accounts (IRAs) can be a great tool for income growth.

...

Bright Wealth Management

How to save money on retirement planning following 2024 election

PHOENIX -- With the 2024 election over, economic changes could impact how people plan for retirement as 2025 is on the horizon.

...

The UPS Store

How The UPS Store is giving back to the community

PHOENIX -- As 2024 nears a close, The UPS Store is looking to give back to the Arizona community with the holiday season approaching.

Dave says: Getting out of a big mess doesn’t always feel good, but it’s necessary