On The Ramsey Show – Highlights YouTube channel, Sandy, 70, called for advice from the American finance personality. Mr. Ramsey stressed to her the importance of living a debt-free life, especially in her situation.
Sandy wanted to build a detached garage on his property.
Her house is worth $190,000 (about £157,000) and she still owes $136,000 (about £112,000).
However, to be able to build her garage, she would need to refinance her house and take out $20,000 (about £16,000) of equity.
She wasn’t sure it would be a good decision because she’s retired.
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When Dave asked her about her financial situation, she replied, “I don’t have any money, except for a little savings at the moment, not a lot.
“I have $900 (about £750) in savings.”
Sandy explained that she lives off Social Security and her teachers’ pension fund.
Social Security is a federal program in the United States that provides retirement benefits and disability income to qualified individuals and their spouses, children, and survivors.
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“Love that you’re a common sense frugal lady and have a bit of garage fever here and usually a nice cold shower can set the fevers right.”
He and Sandy laughed. He confirmed to her that he would send survival guides to his grandchildren as gifts for graduation. After Dave and Sandy shared a laugh, he confirmed that he would send survival guides to his grandchildren as graduation gifts.
He added: “That last thing you need is more debt.
“You don’t have any money, you live conservatively on retirement and social security, you’re 70 and you still have a mortgage.
“I don’t need you to have a bigger mortgage that will further destabilize your life, so it’s not worth the extra risk and stress it might put on you.”