Dave Ramsey warns young people, locked out of the housing market, that corporate America has screwed you. Credit card debt is at an all-time high and Gen Z and millennials can't even afford to buy a house.
00:01:10.900We've had these big companies, the car companies, the banks, and Congress with the student loan debt,
00:01:15.740screwing these two generations at a record like never before.
00:01:19.560And so what we're finding is we're finding lots of Gen Zers, lots of millennials,
00:01:23.640able to buy a home when they fight through and sell the stupid car and get rid of these debts.
00:01:30.040Do you think that that's why they're maybe not going out there and buying those first-time
00:01:34.400homes? They're looking to other investments? Well, they're not looking at other investments.
00:01:38.120They're broke. Their disposable income has been eaten up by those three categories I was talking
00:01:42.540about. Again, car debt is out of control. Our message to Gen Z, I think he's talking his book
00:01:49.040to some degree. You know, certainly there is a lot of debt out there. We've seen that. You're
00:01:52.700thinking he's selling a book right now i think he's just talking his book his whole thing is
00:01:55.960you're going to get you out of debt i'm going to get so that's his whole for sure that's a good
00:01:59.100point okay so but he did make some good points and clearly the evidence is there that we have
00:02:04.000seen credit card debt rise rather significantly i believe it's up 22 over the past four or five
00:02:10.080years so we we have seen a big jump up in credit card debt in the amount that you're carrying so
00:02:14.900that has a that has a you know a very poor effect on your overall ability to purchase a home
00:02:20.640But I do believe that what we really need to look at is on the overall picture, if I'm looking to purchase a home right now, my down payment is definitely part of that problem, is the down payment I have to come up with the savings.
00:02:37.620Also, my psyche is another one because I'm hearing all this negative stuff about the housing market.
00:02:42.460And many people don't have the education.
00:02:44.500Some people think you need 20% to buy a home.
00:02:46.300They don't realize you could buy a home with 3.5% or 5%.
00:02:48.940If you ask, I think there was a survey that was done by Realtor.com, about half the individuals that are asked to buy a home, they think you need 20% down.
00:02:58.180So there is an educational gap there in people entering the housing market.
00:03:03.680That said, it's still a challenge to buy a home.
00:03:07.260But what Ramsey is also talking about here is that this debt is something that is pushed upon people.
00:03:54.580Well, it means that the Christmas and holiday purchases and post-holiday sales,
00:03:59.600and you went and bought a big screen TV for another $1,000 and everything,
00:04:03.900you know, at Best Buy and got it installed for your Super Bowl party,
00:04:06.780and you put it on BNPL, and then you only made half of the first payment,
00:04:11.500and you triggered the hyper-interest rate.
00:04:13.300Look carefully at BMPL. If you don't pay those two, three or four very specific payments on specific dates, the slam bam that you get on the interest rate is insane.
00:04:25.740It's 30 percent or more in some cases.
00:04:28.540And so it's the part of it is, Pat, we can talk about student loans and manipulation of students and the cost of tuition and all rail against colleges that basically use the U.S.
00:04:39.620government student loan program to raise tuition it's a monopoly we could talk about that yeah but
00:04:44.700i'm going to stick with the consumer there's some common sense for the consumer and financial
00:04:48.660education that's needed barry was alluding to because no no college manipulated you to spend
00:04:55.600a thousand bucks at best buy on a big screen tv and put it on bmpl right nobody forced you to do
00:05:01.800that so there's got to be some common sense on the consumer and i'll say all these people are
00:05:05.460being victimized, victimized. That's not always the case. And the things that have happened to
00:05:12.340car loans are correct. They kept stretching it out. I remember where I was when a friend says,
00:05:20.840hey, I got a 60-month car loan. I say, you got a 60-month car loan? When I had bought a Ford
00:05:26.580Escort after I got out of college, a little Ford Escort, cheap to insure, reliable, economical in
00:05:36.080terms of gas. That was my criteria. It was a 48-month car loan with an option to bring it down
00:05:44.660to 36. So you know what I did? I got my bonus and I put like an extra thousand dollars down
00:05:51.040and i had a 36 month car loan so you still had 36 and 48 now look at the lengths of them
00:05:58.60036 months now is oh you want 36 months lease it lease it this is what we're gonna do so the
00:06:04.900consumer you know has to have a hand in their own salvation here in my opinion um and dave ramsey's
00:06:12.720dave ramsey's right but to merely sweep it off and say oh corporate america has screwed you
00:06:18.160Maybe there's some of that going on. But come on, Dave. Consumers have to have, you know, common sense.
00:06:24.080You see a 400 pound person and you say the food got in there somehow.
00:06:28.480Yeah. Brandon. Yeah. So I don't think it's just corporate America.
00:06:32.560I'm using an analogy. But first, I'll say my base case is that I think boomers pillaged America, pillaged their generations after them, Gen X and millennials and Gen Z.
00:06:42.760And I'll use the analogy that you guys have all done well for yourselves.
00:06:46.160Do you think if you were to take out an amount of debt that exceeded your net worths by, like, 5 to 6x and then left your kids and grandkids with that, would that put them in a good situation?
00:06:56.760Are you talking about the federal deficit?