Save Additional Payment with airSlate SignNow

Save additional payment

all right let's go to Olivia in California hi Olivia welcome to the Dave Ramsey show hi Rachel thanks so much for taking my call sure what's up Dave I just want to start by saying first of all thank you so much if you have come into my life 10 years sooner oh my god I would be a millionaire by now well that means 10 years from now you will be I'm on it I am mourning I am focused and not finished I am a good dull intense lover here's my question I my husband and I are interested in moving back to the East Coast were originally from the Catskills and we moved to California for work but we're finding that even though we're making pretty decent money we can't afford the home prices out here so we're looking to move back to the East Coast in February when our lease is up but we want to know is purchasing a home right now while we're still in baby step two we've paid off about $30,000 in debt in the last year but we're now at our student loans were and then there are 67 and 22 so we want to know if moving back to the East Coast is a good idea with having those student loans and should we stop the student loan payments considering what's happening right now with the government and put that money towards our down payment well if I were in your shoes Olivia I would I would hold off on buying I think moving to the East Coast that's a lifestyle decision you guys want to make in February once your lease runs up is it February right so it'll be about another nine months yeah nine ten months so yeah I mean by that point you guys will be tackling this debt you'll you know your debt load will be less because you'll be paying on it but if you still have that student loan that I would I would rent or lease something out on the East Coast but I would still make the move I think you can do that you'll have to account for some expenses and things that will cause there but I think that yeah that's a lifestyle move that you guys can still make but I would not purchase a home I wouldn't save up for a down payment or use any money you have to pay down those student loans Olivia the reason is those kind thirty years of doing this I've never had someone ever who said I paid off my dad I saved my emergency fun I put down a down payment on home oh that was such a big mistake but I have met with thousands of people and taking calls from thousands of people that say I bought a house while I still had a bunch of debt around my neck and the house turned into a curse rather than a blessing and the reason is is it just cost money to own a house stuff breaks and things happen and stuff comes out of nowhere and it's a different level of strain on you than renting and so I would rent the cheapest thing you can rent and that is reasonable and safe so that you can pay off the debt even faster so that you can buy but rachel is exactly right I definitely would be debt-free and have your emergency fund plus a down payment when you buy I know that sounds super conservative but today in the middle of this mess it doesn't sound conservative it sounds reasonable because it was always reasonable