In a recent episode of “The Ramsey Show,” a couple in their 70s shared how they went from being completely debt-free to falling back into financial chaos. After completing Dave Ramsey’s Financial Peace University in 2016, they had paid off all their debt by 2017 and even bought their mobile home in cash. But today, they owe $46,000.
“We were debt-free completely,” the wife, who called in, said. But since 2017, they opened 13 credit cards and took out three personal loans. Their current income is limited to Social Security: $1,600 a month from her, $1,500 from her husband. Her husband picks up odd handyman jobs, but it’s not enough to cover their expenses.
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Recently, they applied for a $29,000 debt consolidation loan and wanted Dave’s advice before accepting it. “That will put us into a debt relief loan,” she said. “We haven’t bought it yet, but we were able to obtain a loan.”
Jade Warshaw, Ramsey’s co-host, wasn’t having it. “You’re still looking to debt as the solution for this,” she told her. “You haven’t learned your lesson that debt is the issue.”
The couple insisted they were always “100% paying the bills on time.” I don’t know how we’ve done it,” she said.
“That’s not a miracle,” Ramsey replied. “You paid the stinking credit cards before you did anything else. Then you barely ate, and your husband swung a hammer enough to get it done.”
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The couple lives in Riverside County, California, about 100 miles from their family in Los Angeles. Their mobile home and the land it’s on are worth around $135,000. But even owning their home outright hasn’t kept them afloat.
“You can’t even pay the payments on what you’ve got,” Ramsey said, noting their $3,100 monthly income doesn’t stretch far in such a high-cost area. “You’re telling yourself a lie,” Warshaw added.
Ramsey pointed out the underlying issue: “We don’t have math that is sustainable here. The pattern keeps you spending more than you have coming in.”
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He emphasized that debt consolidation is not the way out. “You cannot borrow your way out of debt,” he said. “So no, do not take the $29,000 loan.”
DJ Kamal Mustafa
I’m DJ Kamal Mustafa, the founder and Editor-in-Chief of EMEA Tribune, a digital news platform that focuses on critical stories from Europe, the Middle East, Africa, and Pakistan. With a deep passion for investigative journalism, I’ve built a reputation for delivering exclusive, thought-provoking reports that highlight the region’s most pressing issues.
I’ve been a journalist for over 10 years, and I’m currently associated with EMEA Tribune, ARY News, Daily Times, Samaa TV, Minute Mirror, and many other media outlets. Throughout my career, I’ve remained committed to uncovering the truth and providing valuable insights that inform and engage the public.
