Man Says Dave Ramsey Blunt Advice Helped Him Clear $38K Car Debt

• Seven years ago, a man on Dave Ramsey’s show said he spent half his income on car loans.
• He followed Ramsey’s advice and is now debt free and helping others with their finances.
• He told insiders that many people are in similar debt situations, “they just don’t want to admit it.”

A man who appeared on Dave Ramsey’s show seven years ago said he was debt-free and was able to put his family back on track thanks to tough advice he received.

He also has a word of caution for anyone thinking of getting a big car loan deal.

Faraz Amir Farzaneh, who appeared on The Ramsey Show in 2016, told the host that he spends $600 a month (half of his relatively small income) to pay off a loan on a BMW 328 worth about $38,000. Told.

Ramsey sold the car at the time and said he would never do such a stupid thing again.

Last week, a reposted clip of an old show went viral on TikTok, allowing Insiders to catch up with Amirfarzaneh for the latest.

He said he took the advice. His parents gave him $5,000 when he asked for his help, he said, and worked tenaciously to pay off the rest of the loan, which he paid off in 2018. He said it has been almost five years since he was in debt.

Amir Farzaneh, then 27, decided to call Ramsey after realizing he was nearing arrears on his credit card bill and suffering from “years of bad decisions and lack of direction.”

He said he lost his job and lost his income because he took too much sick leave. At the same time, he said, there was a growing expectation in Los Angeles that everyone should own a good car.

I was a student at the time and I was living with my parents, but I took out a large loan to buy a car.

Amir Farzaneh said he felt he needed help after having to borrow $20 from a friend to avoid defaulting on the minimum payment on a card that was near the limit. He had a total of 10 credit cards, all of which were near their limit, he said.

Ramsey is an American radio host and an evangelical Christian known for his financial advice. His method has faced some controversy because it’s more of a preacher than a financial coach, most recently caused by some listeners claiming they were duped by a timeshare exit company he advertised. involved in a $150 million lawsuit.

But Amir Farzaneh, who was not involved in the lawsuit, said he appreciated Ramsey’s advice because it was simple.

“He’s literally just telling people to get out of consumer debt, set up an emergency fund, invest in things like 401k’s and IRA’s so they can fund their retirement,” he said. Told. “It’s very common sense and easy to follow. It’s the only thing I’ve done that has improved my life.”

At the 2016 show, Recent repost hits 1.2 million views on TikTokRamsey told Amir Farzaneh to sell the car immediately, even if it meant he was still heavily in debt and had trouble finding a new lender.

Amir Farzaneh had a hard time. He said he owed about $38,000 on the car, including $15,000 carried forward from previous auto loans. He sold the car for $21,000, leaving a deficit of about $17,000, so he asked for a loan.

He has been approved for a $13,000 loan from Upstart, but still has about $5,000 owed. Meanwhile, his then-boss told him that if he couldn’t reliably get to work without a car, he would be fired.

Amir Farzaneh said he felt helpless at this point and “almost broke my heart”. He called his parents and they gave him the $5,000 he needed to keep going.

“I had a friend whose mother owned a 2005 Toyota Avalon that was physically damaged but in good mechanical condition and sold it to me for $900. They gave me,” said Amir Fazaneh. “And I drove it for three years.”

A few months later, Amir Farzaneh graduated and was hired by a military contractor, where he earned a better income and could work unlimited overtime.

“I worked six days a week and just paid off the debt on June 15, 2018,” he said. “I went from being completely submerged in water to being completely debt free.”

Amir Fazaneh said he later took good care of the Avalon, made improvements, and sold it for $2,000, $1,100 more than he paid. Even now he drives an old Toyota and instead prefers to spend his hard earned money on vacations and a recent wedding.

“I just put my priorities elsewhere and didn’t really put money as my first priority in life,” he said. “It feels like money rules everyone’s life, at least here in the United States.”

Amir Farzaneh, now in his 30s and living in Texas, has made a career as an insurance agent. He also helps his family and friends when they are in financial trouble and thinks he may one day start his own financial coaching business.

He urged people with jobs they didn’t want to pay for something they didn’t really need, like a nice car, to rethink what they were doing.

The number of US auto loans has grown 29% over the past decade. According to data from Finder. In 2022, he has financing on 84% of all new cars discharged from dealers, According to Statista data.

“Sometimes they do certain things for different reasons, like what my friends and family think,” said Amifazane.

“It was the same for me. And I just got out of that situation. I don’t care anymore what anyone thinks about what I drive.”