Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

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...

CORRECTION: Marshall County Traffic Advisory

MARSHALL COUNTY, Ky. (10/20/14) — A contractor for the Kentucky Transportation Cabinet plans to close the northbound… Read More

Fall Frolic at Nature Station

GOLDEN POND, Ky. (10/20/14) — Land Between The Lakes National Recreation Area invites the public to celebrate the… Read More

Most Read This Week

October 17, 2014 11490

UK Women's Soccer Welcomes Ole Miss, No. 5/4…

in General Sports For All Sites by UK Athletics
October 20, 2014 3859

Uncle Lee's in Greenville is Closing Its Doors…

in Local (Muhlenberg) Top News by www.unclelees.com
October 15, 2014 3549

Family Business, Graphics Pros to Open Friday

in Top News For All Sites by Shawn Freels
October 15, 2014 3406

Chamber Meeting and More Announced

in Local (Muhlenberg) Top News by Dorothy Walker
October 17, 2014 3299

Single Vehicle Collision Results in One Injury

in Local (Muhlenberg) Top News by Trooper S. C. Recke
October 15, 2014 3188

Madisonville Police Arrest Reports - Oct. 15, 2014

in Hopkins News by Madisonville Police Department
October 19, 2014 3131

Kentucky Energy Department Releases Virtual Solar…

in General News For All Sites by Dick Brown
October 15, 2014 2868

Woman Arrested for Domestic Dispute in the Street

in Local (Hopkins) Top News by Madisonville Police Department
October 17, 2014 2629

Woman Arrested at Taco Bell for DUI

in Local (Hopkins) Top News by Madisonville Police Department
October 16, 2014 2516

Madisonville Police Arrest Reports - Oct. 16, 2014

in Hopkins News by Madisonville Police Department

Stories Trending Today

October 20, 2014 3859

Uncle Lee's in Greenville is Closing Its Doors…

in Local (Muhlenberg) Top News by www.unclelees.com
October 20, 2014 2243

Man Charged for Assaulting Pregnant Wife

in Local (Hopkins) Top News by Madisonville Police Department
October 20, 2014 1591

Man Arrested for Shoplifting, Assaulting Police…

in Local (Hopkins) Top News by Madisonville Police Department
October 20, 2014 1270

Hopkins County Sheriff's Arrest Reports Released

in Hopkins News by Sheila Hopper
October 20, 2014 1205

Madisonville Police Arrest Reports - Oct. 20, 2014

in Hopkins News by Madisonville Police Department
October 20, 2014 1132

Paul Simon Headlines COPD Tribute for Phil Everly

in Top News For All Sites by Paul McRee, SurfKY News
October 20, 2014 1121

Muhlenberg Community Hospital Prepares for…

in Local (Muhlenberg) Top News by Erin Warren
October 20, 2014 1104

KU and LG&E to Fund Qualified Tree-Planting…

in General News For All Sites by Cliff Feltham
October 20, 2014 989

Fall Frolic at Nature Station

in Lakes News by Land Between The Lakes
October 20, 2014 945

Veterans Honored Nov. 8-11 at Land Between The…

in Lakes News by Land Between The Lakes

SurfKY News Group, Inc.
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


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

social fbsocial twsocial yt
social gpsocial flrsocial rss