Dave Says

By Dave Ramsey
Author, The Total Money Makeover

CBN.com – Finanacial guru Dave Ramsey answers questions about wise financial decision-making.

Joint Account With Girlfriend

Dear Dave,
A few months ago my girlfriend and I opened a credit card account in both of our names. Now, we’re no longer dating. How can I get my name off this account?
--Jeremy in Oklahoma City, OK

Dear Jeremy,
First, never open any kind joint account with someone when you’re not married. Second, never use credit cards again! Sounds like the credit shark took a chunk out of you and is still nibbling away.

You need to call the credit card company right now, and tell them to take your name off the account immediately. Then, find out if there’s a balance on the card. If there is, and it was charged up while your name was on the thing, you’ll still be liable for that amount. They won’t release you from responsibility for those purchases, but you can get off the hook for any future charges.

After this, send them a certified letter - return receipt requested - stating that you are no longer liable for any additional charges on the card. You may even want to call them in a few days to ensure they got the letter.

Get this done now, boss. Otherwise, you’re going to be in a lot of trouble, along with your ex-girlfriend, and that’s not my definition of fun!
-- Dave

Small Suto Repair Business Needs Equipment

Dear Dave,
Not long ago I was laid off from my job at an auto repair shop. I have some tools of my own, and was thinking about opening my own business. The problem is there are some tools I still need and can’t afford. Do you think I should get a small loan – maybe $15,000 – to set up my shop and get into business?
--George

Dear George,
I can’t recommend that you go into debt to start this business. Don’t get me wrong, I love it when a person has the drive and talent to open their own business. But right now you’re unemployed and looking at going into debt. That’s not a good plan.

According to the Small Business Administration, 80 percent of new businesses fail within the first five years due to debt payments. I started my business on a card table in my living room years ago, so I know it can be done without going into debt.

George, you have your own tools and the know-how. Find a place to work, do the jobs you can with the tools you have and then save up for the other tools you need. If you’re talented in your field and you move slow and smart on this deal, you’ll have a thriving business on your hands and no debt to eat up the money you make. This way, you’ll own the business instead of it owning you!
-- Dave

Church Gets Large Donation of Single Stock

Dear Dave,
Our church just received a very generous donation of $100,000 in a single stock. We’re looking at using this money in about five years to build a new sanctuary. Do you think we should leave the money where it is or invest it elsewhere?
--Fred

Dear Fred,
I’d get the money out of there in a heartbeat. Parking money in a single stock is an ultra-high risk. I’m guessing that the person who made this donation viewed it as a great tax move for them, but it’s a really bad place for a church to leave the money.

The leadership of a church is there to minister to the people, and put together facilities and programs to help the congregation and the community. They are not there to be single-stock speculators and gamblers. All churches have business people in them, and sadly they end up bringing both good and bad business practices from out in the world into God’s house. This isn’t a good idea, either, because you have different motivations and different mission statements at work.

The Bible itself says to “spread your money to seven, yes to eight portions, because you do not know what disaster may come upon the land.”
-- Dave

Dave Ramsey is a nationally-syndicated radio talk show host and author of the New York Times bestselling books, Financial Peace Revisited and The Total Money Makeover. His life-changing advice in the area of personal finance helps people get out of debt, stay out of debt and build wealth that will last a lifetime and beyond.