A WOMAN has been left desperate for a way out of a million-dollar financial hole.
The worst part is that she didn’t discover it until recently, as her partner had kept it hidden for years.
GettyA woman has sought advice from experts after her husband hid debt (stock image)[/caption] YouTube/The Ramsey Show HighlightsShe spoke with Jade Warshaw (pictured) on The Dave Ramsey Show recently[/caption]Needing debt advice, she sought the assistance of The Dave Ramsey Show and recently called in to speak with experts Jade Warshaw and Ken Coleman.
“I find myself in a lot of debt…” the caller, Cathy, noted.
Cathy proceeded to explain that she’d been married to her husband for 27 years, quitting her corporate job to take on the other full-time job of raising their four children.
After several years of “dishonesty,” she filed for divorce, only to discover that the her husband had racked up “close to $1 million in debt.”
“I’m afraid that I’m going to be responsible for half of it in [the] worst case scenario,” she added.
Warshaw immediately asked what kind of debt was accrued over the years, and Cathy explained that it was a mix of unpaid income taxes, credit cards, and an office building mortgage.
Credit cards accounted for over $80,000, unpaid income taxes more than $160,000, and the mortgage at least $550,000.
Another $500,000 was money owed back to Cathy by her husband that she got from inheritance.
Cathy told the financial experts that her ex-husband would tell her the cash was being spent on “taxes, payroll, this bill or that bill,” among other things.
Sadly, given that Cathy’s name is likely on most of the documents pertaining to the debt aside from the inheritance, Warshaw and Coleman said she’d likely owe around $250,000 after the divorce was finalized.
Warshaw advised that moving forward, Cathy approach money with a partner always as a “joint” effort rather than letting one person completely manage it all.
HOME HELP
Coleman also recommended a crucial way to start getting out.
It involved the couple’s current shared home, as they wouldn’t need it after the divorce.
Cathy noted it’s worth $2 million, which Coleman emphasized as “good news.”
Dave Ramsey's 7 Baby Steps
Dave Ramsey advises his followers to follow a seven-step plan to save for emergencies, pay off debt, and build wealth.
Step 1: Save $1,000 for your starter emergency fund.
Step 2: Pay off all debt (except the house) using the debt snowball.
Step 3: Save three to six months of expenses in a fully funded emergency fund.
Step 4: Invest 15% of your household income in retirement.
Step 5: Save for your children’s college fund.
Step 6: Pay off your home early.
Step 7: Build wealth and give.
She also got a new job as an attorney, which pays a salary of about $130,000 annually.
“This is not the end of the world,” Coleman added.
PAY IT OFF
Both experts immediately advised using the assets that would be split in the divorce, like the $2 million house, to pay off the $250,000 debt immediately.
“It sounds like there’s going to be enough assets for you to clear your debt and still have a decent amount of money,” Warshaw told Cathy.
The financial expert advised Cathy to use a portion of the remainder and purchase a new home outright.
“You’ll ride off into the sunset,” Warshaw continued.
Other Americans have also sought The Ramsey Show for advice recently after finding themselves in difficult financial positions.
Experts from the series helped a caller with a “poor mindset” realize their side hustle could get them out of $50,000 worth of debt.
A 19-year-old with $115,000 in loans was also told their “story” would be a help in getting their finances back in order.
Read More Details
Finally We wish PressBee provided you with enough information of ( My husband put us in $1m worth of debt & lied about it – I’m on the hook for half but experts gave me crucial first step )
Also on site :