Dave Ramsey tells 70-year-old with no retirement savings to 'clean this mess up'
Personal finance expert Dave Ramsey is giving advice to people on their retirement and savings.
Dave Ramsey has urged seniors with no retirement savings “to clean this mess up” as soon as possible.
On his podcast The Ramsey Show, the investing expert gives personal finance advice to those struggling to get by.
During the show, Americans call in with questions regarding their financial situation to see if Mr Ramsey can address them.
Janice, 70, called into The Ramsey Show to discuss her and her husband’s husband situation as the pair do not have any retirement savings.
Based on a survey by Credit Klarna earlier this year, 27 percent of Americans aged 59 and up are in a similar predicament.
READ MORE: Dave Ramsey shares how man, 25, can ‘double’ money to become millionaire in his 30s
According to the caller, she has $25,000 cash in savings and a home worth an esteemed $250,000.
When it comes to her mortgage, Janice only has $27,000 left to pay off and is owed around $11,000 from a car.
The caller shared that the biggest issue she and her partner face is determining how to use the $25,000 they have saved.
She explained: “My husband wants to take the money that we have and pay off the car, and then take those $350-per-month car payments and pay off the house.
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“My problem is I’m so stressed I at least want to have a house to live in … so I need some help here.”
In terms of financial support, Janice and her husband get $2,000 monthly from Social Security.
Outside of these payments, the 70-year-old cited that she earns around $2,000 working as a house cleaner,
Her husband was working but issues to do with his physical health have prevented him from making a regular income.
On top of this, Janice admitted the pair have made “bad cash investments”, on top of soaring medical bills.
When Dave Ramsey asked about the car, the caller revealed they owned three, including a $10,000 roadster.
The personal finance expert recommended the duo combine their savings and the money made from the roadster to pay off the other car.
However, Mr Ramsey said the pair should keep $15,000 as an emergency fund and save the rest towards the house, with Janice and her husband having to work paying off their mortgage for the next year and a half.
He said: “I’m sorry but the roadster is gone. I’m sure that’s going to break his heart but I’m sorry. It’s gone.
“Because with no debt at all, you can make it. It’s not going to be pretty, but you can make it.
“If you want to keep this house you’re going to start living like you’re completely bankrupt. Because you have to clean this mess up. You do not have wiggle room here
