Dear Dave,
Recently, the garage where I worked for a long time went out of business. I have a lot of my own tools, and I was thinking about taking out a loan of around $20,000 to buy a few extra tools I need to open my own garage. Itās always been a dream of mine to have my own shop, and this seems like the perfect opportunity. What do you think?
Rick
Dear Rick,
I love it when a person has the talent and drive to open their own business, but right now youāre unemployed and looking at going into debt. Thatās a bad idea.
Youāll never hear me recommend going into debt to start a business. Did you know most new businesses fail within the first five years due to debt payments? I literally started my company on a card table in my own living room years ago, so I know for a fact you can launch a business without going into debt.
You said you have your own tools, plus you have lots of experience. My advice is to find a place that needs a good mechanic. Then, use the income from a new job to save up for the additional tools you need, and other startup costs associated with opening your own shop.
If you play this smart and start slow, you could have a thriving business on your hands in a few years and no debt to eat up the money you make!
āDave
Dear Dave,
I opened a credit card account with a boyfriend several months ago in both of our names. Weāre no longer dating, and I was wondering if I can get my name off the account.
Melody
Dear Melody,
Yes, you can. Call the credit card company right now, and tell them to take your name off the account immediately. Find out if thereās a balance on the card. If there is, and it was charged up while your name was on the account, youāll still be liable for that amount. They wonāt release you from responsibility for those purchases, but you can get off the hook for any future charges.
Then, send them a certified letterāreturn receipt requestedāstating that you are no longer liable for additional charges on the card going forward. It wouldnāt be a bad idea to call them again in a few days to make sure they got the letter, too.
Youāre learning a hard lesson here, Melody. You should never open any kind of joint account with someone when youāre not married. And stop using credit cards!
āDave
* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 15 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.
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